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Carbon taxation strategies for cost equivalence: A comparison between European production and grape imports

(2024)

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Hutschemackers_7308-23-00_2024.pdf
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Abstract
This thesis explores carbon taxation strategies to achieve cost equivalence between European and imported grapes. By comparing production and distribution costs, this study seeks to identify optimal carbon taxation policies to ensure a level playing field for grape producers while promoting environmental sustainability in the European market. The research employs a simplified cost model to evaluate three scenarios, revealing optimal carbon tax rates ranging from 140 to 469 USD/tonne CO₂e, depending on the method used for emissions estimation. Complementing this analysis, a literature review assesses the feasibility of carbon taxation introduction and examines its global implications and challenges within the European grape market. Overall, the thesis offers valuable insights into how carbon taxation could influence market dynamics and foster a more sustainable grape industry.