Efficiency and Redistribution in Environmental Policy: An Equilibrium Analysis of Agricultural Supply Chains

• 成果类型: Article
• 署名作者: Dominguez-Iino, Tomas
• 署名单位: University of Chicago
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/739325
• 发表日期: 2026
• 关键词: pass-through; MARKETS; impacts; COSTS

摘要

I build an empirical model of the South American agricultural sector to show how environmental policy is transmitted along a supply chain when regulation at the externality's source is infeasible. Given obstacles to a first-best carbon tax on farmers, I show how second-best alternatives-downstream agribusiness taxes-reduce upstream emissions, but their effectiveness is limited by poor targeting while also being regressive. Agribusiness monopsony power worsens targeting by lowering pass-through to upstream farmers in uncompetitive and emissions-intense regions, thus eroding the Pigouvian signal where social cost is highest. By contrast, small-scale but well-targeted upstream interventions perform robustly when markets face preexisting distortions.