Impacts of Novel Protein Foods on Sustainable Food Production and Consumption: Lifestyle Change and Environmental Policy

We analyse the impacts of a change in consumers¿ preference for Novel Protein Foods (NPFs), i.e. a lifestyle change with respect to meat consumption, and the impacts of environmental policies e.g. tradable emission permits for greenhouse gases (GHGs) or an EU ammonia (NH3) emission bound per hectare. For our analysis we use a global applied general equilibrium (AGE) model that includes consumers¿ lifestyle change, different production systems, emissions from agricultural sectors, and an emission permits system. Our study leads to the following conclusions. Firstly, more consumption of NPFs assists in reducing global agricultural emissions of methane (CH4), nitrous oxides (N2O) and NH3. However, because of international trade, emission reduction does not necessarily occur in the regions where more NPFs are consumed. Secondly, through lifestyle change of the `rich¿, the emission reduction is not substantial because more `intermediate¿ consumers will increase their meat consumption. Finally, for the same environmental target the production structure changes towards less intensive technologies and more grazing under environmental policy than under lifestyle change.