Question

An increased consumption of substitutes for meat that are not derived from livestock. MLA has indicated...

An increased consumption of substitutes for meat that are not derived from livestock. MLA has indicated that they are particularly interested in the potential impact on the sector’s emissions from increased consumption of near perfect substitutes. Analyse the following policy by giivng a brief summary of the potential economic effects (costs and benefits).

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Answer #1

An increased consumption of substitutes for meat that are not derived from livestock will reduce the green house emissions into the atmosphere and move the economy towards a more efficient equilibrium. This is because livestock replacement with substitutes will reduce emission of green house gases as farming livestock contributes around 6 billion tonnes of green house gases to the atmosphere each year.Any development of substitutes will reduce this generation of harmful gases into the atmosphere and thus move the economy towards a more efficient equilibrium.

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