Willingness to Pay for Beef: : The case of Swedish eco-tariffs

This thesis examines overconsumption of red meat in Sweden, with a particular focus on beef, and evaluates the potential for trade policy—specifically import tariffs—as a tool to drive more sustainable and health-conscious consumption patterns. Overconsumption of red meat poses both environmental and public health risks, with high-income countries like Sweden contributing disproportionately to global environmental degradation through meat imports. Despite national dietary guidelines recommending a reduced intake, Swedish consumption levels remain well above recommended thresholds. This thesis examines Swedish consumers' willingness to pay (WTP) for beef products of different origins (Swedish, Irish, Brazilian), and evaluates their substitution preferences and openness to eco-tariff implementation. The findings reveal that consumers assign a significantly higher WTP to domestic beef, a behavior influenced by perceptions of quality, ethics, and environmental impact. Foreign beef was more price-sensitive, reflecting higher elasticity, and women and higher-income individuals were more likely to reject non-local products on ethical grounds. Substitution preferences skewed toward poultry and pork, with substantial potential for greenhouse gas emission reductions if such shifts occurred. However, the environmental benefits depend on broader production practices and consumption patterns. While simulations showed that eco-tariffs could significantly reduce demand for imported beef, political feasibility and practical impact remain limited. Survey responses indicate resistance to government price interventions, and unilateral actions within the EU’s free trade framework are constrained. Ultimately, the study concludes that while eco-tariffs may serve as a transitional or symbolic mechanism, systemic change in trade and food policy—both domestically and internationally—is essential to achieving lasting environmental and public health benefits.