
CO2 tax may cost consumers slight extra
A proposed CO2 tax on agriculture in Denmark could increase consumer costs marginally, potentially by 4.50 DKK for 500 grams of beef, normally priced at 45 DKK. The Svarer Committee’s report outlines three models, with the least expensive scenario bumping the price of beef by 1.40 DKK, and pork and milk by 60 to 20 øre per half-kilo or liter. Food economist Henning Otte Hansen notes the price hike for consumers would be modest over several years, and replacing Danish products with imports could mitigate the increase. Green think tank Concito’s chief economist, Torben Hasforth, adds that the most likely model would cost an average household 200 DKK annually without consumption changes. Both economists concurred the burden would largely fall on farmers, and the climate may suffer if imports from countries with higher CO2 emissions increase. A possibility mentioned is that the CO2 footprint might be reduced locally but outsourced globally.