ORIGINAL RESEARCH article

Front. Sustain. Food Syst.

Sec. Climate-Smart Food Systems

Volume 9 - 2025 | doi: 10.3389/fsufs.2025.1349340

Can carbon taxes and subsidies promote both carbon reduction and economic growth in dairy farming? --A case study from the global golden milk source belt

Provisionally accepted
Shuai  ShiShuai ShiJia  ChiJia Chi*Yu  JingYu Jing
  • Northeast Agricultural University, Harbin, China

The final, formatted version of the article will be published soon.

Dairy farming(DF) is an important source of carbon emissions(CE) in animal husbandry. How to use taxation and subsidies to promote carbon emission reduction and ensure industrial economic growth is the focus of academic attention.This study uses the market equilibrium model to explore the impact of carbon emission tax(CET) and subsidy on carbon abatement and economic growth of dairy farming, sets different scenarios and tries to find a win-win ratio of tax and subsidy. The empirical test was carried out in Heilongjiang Province in the global golden milk source belt. The results show that the scenarios significantly suppressed CE, but carbon taxes lead to a decrease in milk yield, while subsidies lead to an increase. If the subsidy is less than 92% of tax revenue, there is a decrease in yield.When the carbon tax revenue is equivalent to the subsidy, a reduction in emissions of 0.02 -0.11% can be achieved, accompanied by an increase in yields ranging from 0.032% to 0.160%. If the ratio of subsidy to tax is between 1.311 and 2.045, dairy yield growth coordinated most with emissions, with which the government could make decisions according to different policy targets.

Keywords: carbon tax-subsidy policy, Decoupling analysis, Market equilibrium, Dairy farming, global golden milk source belt

Received: 04 Dec 2023; Accepted: 15 Apr 2025.

Copyright: © 2025 Shi, Chi and Jing. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

* Correspondence: Jia Chi, Northeast Agricultural University, Harbin, China

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