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Earth

World's First Carbon Tax On Livestock Will Cost Farmers $100 Per Cow (cnn.com) 298

An anonymous reader quotes a report from CNN: Dairy farmers in Denmark face having to pay an annual tax of 672 krone ($96) per cow for the planet-heating emissions they generate. The country's coalition government agreed this week to introduce the world's first carbon emissions tax on agriculture. It will mean new levies on livestock starting in 2030. Denmark is a major dairy and pork exporter, and agriculture is the country's biggest source of emissions. The coalition agreement -- which also entails investing 40 billion krone ($3.7 billion) in measures such as reforestation and establishing wetlands -- is aimed at helping the country meet its climate goals.

"With today's agreement, we are investing billions in the biggest transformation of the Danish landscape in recent times," Foreign Minister Lars Lokke Rasmussen said in a statement Tuesday. "At the same time, we will be the first country in the world with a (carbon) tax on agriculture." The Danish dairy industry broadly welcomed the agreement and its goals, but it has angered some farmers. [...] The tax, expected to be approved by Denmark's parliament later this year, will amount to 300 krone ($43) per tonne (1.1 ton) of CO2-equivalent emissions from livestock from 2030, rising to 750 krone ($107) in 2035. A 60% tax break will apply, meaning that farmers will effectively be charged 120 krone ($17) per tonne of livestock emissions per year from 2030, rising to 300 krone ($43) in 2035.

On average, Danish dairy cows, which account for much of the cattle population, emit 5.6 tons of CO2-equivalent per year, according to Concito, a green think tank in Denmark. Using the lower tax rate of 120 krone results in a charge of 672 krone per cow, or $96. With the tax break in place, that levy will rise to 1,680 krone per cow in 2035 ($241). In the first two years, the proceeds from the tax will be used to support the agricultural industry's green transition and then reassessed. "The whole purpose of the tax is to get the sector to look for solutions to reduce emissions," Concito's chief economist Torsten Hasforth told CNN. For example, farmers could change the feed they use.

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World's First Carbon Tax On Livestock Will Cost Farmers $100 Per Cow

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  • $100 per cow - Two steak dinners with sides, service, and alcohol.

    How many dinners can you carve out of a cow? How many cow dinners does one deserve per annum?

    • $100 per cow - Two steak dinners with sides, service, and alcohol.

      How many dinners can you carve out of a cow? How many cow dinners does one deserve per annum?

      It adds at least 4% to the cost of beef. Every beef product. This is how inflation happens, all these good-idea-fairy ideas add up.

      • Re: (Score:2, Insightful)

        by DrMrLordX ( 559371 )

        Eh, not really. If you have a fixed monetary supply and then you artificially increase the cost of a specific product (in this case, anything coming from dead cattle), it may mean higher prices for that product, but it also means one of the following:

        Fewer people buy said product, maintaining price equilibrium on other produxts/services
        The same number of people buy the same amount of said product, leaving less capital available to chase all other products and services, causing their price to go down.

        Actual

        • by drnb ( 2434720 ) on Wednesday June 26, 2024 @11:54PM (#64581427)

          Actual inflation would require an increase in prices across a broad spectrum of products ...

          Which is why I wrote "all these good-idea-fairy ideas add up". I am not claiming that in isolation this will cost inflation.

          • How many more of these good-idea-fairy ideas do you expect to layer on top of this one? Unless it's a uniform tax on everything (or at least a significant majority of goods/services), the same analysis applies.

            • How many more of these good-idea-fairy ideas do you expect to layer on top of this one?

              How many politicians do they have that need to make gestures signaling virtue?

              Unless it's a uniform tax on everything (or at least a significant majority of goods/services), the same analysis applies.

              FYI, someone mentioned the tax is annual, so cows will be subject to two $100 taxations, so it seems its an 8% increase in beef if this is correct.

              Well, its not just an increase in all foods using the beef. There is also all products using the leather. And all products using the rendering of the innards. Oh, and somewhere meat not fit for human consumption and some of those innards not destined for renderings may go into animal

          • by vlad30 ( 44644 )

            Actual inflation would require an increase in prices across a broad spectrum of products ...

            Which is why I wrote "all these good-idea-fairy ideas add up". I am not claiming that in isolation this will cost inflation.

            When I mentioned this to wife a moment ago she said "we will just have to put up our prices so we can afford meat" this conversation will be around 90%-95% https://en.wikipedia.org/wiki/... [wikipedia.org] dinner table and pretty soon everything is going up as everyone wants to eat so you underestimate the effect this will have

        • artificially increase the cost of a specific product

          Externalities are no more artificial than the product itself.

        • ...or the companies make slightly lower profits. In many cases, this'd be sent to off shore tax havens but in this case the biggest company is a cooperative so slightly less money goes into future investment.

          Some people seem to believe that cost of production dictates price. That's just wrong.
      • by Zumbs ( 1241138 )
        The economists who have run the numbers expect the total consumer price increase of beef to be roughly 2% in 2035 when the tax is fully implemented. This is not surprising: While the cost of raising cattle increases, the cost of transport, slaughter and refrigeration are unchanged.
        • The costs you mentioned staying the same have increased here in Europe: (driver/butcher) wages have gone up, fuel prices have risen, refrigeration has become more expensive because the kWh price has gone up. The European markets work very differently from the US, and we pay more taxes.

          • wages: these are all over the place, but have increased on average
          • fuel: USA average $ 3.50/gallon ($ 0.92/liter), Europe average € 1.64/liter (€ 6.19/gallon)
          • electricity: USA average $ 0.1668/kWh, Europe average
      • It adds at least 4% to the cost of beef. Every beef product.

        You do know how capitalism works right? If something costs too much then it is replaced with something cheaper. Or perhaps... do you not believe in the invisible hand of the free market?

        • You do know how capitalism works right? If something costs too much then it is replaced with something cheaper. Or perhaps... do you not believe in the invisible hand of the free market?

          That depends on how elastic the demand is [investopedia.com] .

    • Dairy cows make bad steaks.

  • So it is a good thing the aurochs were all killed. They were ruining the planet.
  • Where's The Beef (Score:3, Insightful)

    by cstacy ( 534252 ) on Thursday June 27, 2024 @12:23AM (#64581461)

    If it's not in Denmark, because it is unprofitable to farm there, then it will be coming from another country, because people still want to eat the beef that they can no longer get.

    Of course, this means the beef will be more expensive, since it has to be imported. And the importing (trucking and railway, and shipping overseas, and port operations, etc.) will result in a net increase in carbon emissions both within and on the way to Denmark.

    So this "feel good" tax will lessen the wealth of the people of Denmark, while causing global warming to go up.

    Good job!

    • Ayup - same problem with increasing the minimum wage to an unsustainable level. The restaurants and delivery businesses go out of business and the jobless and homeless increase. The road to hell is paved with good intentions.
    • Re: (Score:2, Flamebait)

      by Zumbs ( 1241138 )
      This may come as a shock to you, but the main agriculture lobby organization was actually part of the agreement, and made sure that it would continue be very profitable to farm in Denmark. If you look at the actual agreement, all money paid by agriculture is routed back into agriculture, so net cost is ... zero. This is one of the reasons that the agreement is a bit controversial, because our politicians like to say that the polluter should pay the cleanup bill. And agriculture gets to continue polluting wi
  • Will be immediately pocketed by some politician and he will use the money to make a nice barbecue.

  • We are going to eat bugs, aren't we?
  • Stupid tax that will achieve nothing else than making food more expensive for people.
    • No, it will make beef more expensive. That in turn will reduce beef-consumption and make it easier for beef substitutes to emerge. You need to think more about the bigger picture.

  • OMG, really !! Trying to hurt the farmers and eventually put them out of business ! A lot of things worse are causing CO2-equivalent emissions ! This tax and cow fart studies are bull shit on, literally !
    • Put all Danish farmers out of business and on paper Denmark will be a carbon neutral country so that every person in Denmark can sleep well at night knowing that they did their share for improving the environment.

  • the most expensive fart in the world?
    Somehow I never asked myself that important question.

  • by grasshoppa ( 657393 ) on Thursday June 27, 2024 @07:25AM (#64582051) Homepage

    So...100 bucks a cow to make the weather gooder. How, precisely, will that work? Where will the money be going to achieve this astonishing result?

    If, by this point, you trust politicians you haven't been paying attention. You really can't hate and distrust them enough.

  • by radarskiy ( 2874255 ) on Thursday June 27, 2024 @07:58AM (#64582105)

    Reasonable people can disagree about how to internalize those costs.

    But if you're opposed to internalizing them, you're just plain anti-market.

  • I assume they are attempting to encourage behaviors like not eating.
  • "Henceforth, all beef cattle must be grass-fed or fed a diet to minimize the output of methane. Furthermore, all cattle must be individually fitted with an Automated Collection and Methane Extraction (ACME) system, and each individual shall be indelibly tattooed with its methane creation license number, as issued by the Department of Homeland Flatulence, the Social Security Number or Taxpayer Identification of its owner, and the production records of each individual shall be submitted to the DHF. Overproduc

  • Cows are living creatures that produce CO2 and methane as part of just being alive. So this is a tax for being alive.

    I think we should leave the farmers alone and tax the politicians instead

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