Abstract
We develop an environmental Applied General Equilibrium (AGE) model, which includes the economic functions of the environment, to investigate the impacts of consumers' preference changes towards the enhanced consumption of Novel Protein Foods (NPFs) and towards a higher willingness to pay for protection of the environment in the Europe Union (EU). We find that these preference changes impact the pork production and consumption as well as ammonia (NH 3) emissions. Sensitivity analysis shows that the results are more sensitive to the value of the elasticity of utility with respect to environmental quality than to that of the substitution elasticity between pork and NPFs.
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