Mtt Agrifood Research Finland Economic Research Paper

Anni Huhtala has been Director General of VATT since 2015. As the Director General she is responsible for VATT’s activities, finances and results.

Anni Huhtala (PhD) is adjunct professor (docent) of environmental and resource economics at Aalto University. She gained her PhD from the University of California, Berkeley in 1994. Her PhD thesis was on the environmental economic effects of recycling.

Huhtala has been at VATT since 2011. Before her appointment as Director General she was VATT’s Research Director. From 2002 to 2011 she was the first professor of environmental economics at MTT Agrifood Research Finland (now the Natural Resources Institute Finland).

From 1998 to 2002 Huhtala headed the environmental economics research unit of the National Institute of Economic Research of Sweden. From 1994 to 1998 she was professor of economics at the University of Lapland and an Academy of Finland junior researcher at the Finnish Forest Research Institute.

In her research Anni Huhtala has developed and applied methods for the economic valuation of environmental externalities. In her research she has evaluated environmental policy and instruments and has been involved in the international development of environmental accounting and welfare measurement.

Huhtala has extensive and diverse experience managing international research collaboration. She is a member of and holds positions of trust in numerous scientific communities.

Abstract

This paper summarises the simulated effects on Finnish agricultural production and trade of a 20% decrease in Finnish demand for red meat (beef, pork, lamb). According to our results, reduced red meat consumption would be offset by increased consumption of poultry meat, eggs, dairy products and fish, as well as small increases in consumption of fruits and vegetables, peas, nuts, cereal products and sweets. By including the derived demand changes in an agricultural sector model, we show that livestock production in Finland, incentivised by national production-linked payments for milk and bovine animals, would decrease by much less than 20% due to the complex nature of agricultural production and trade. Overall, assuming unchanged consumer preferences and agricultural policy, a 20% reduction in red meat consumption is not likely to lead to a substantial decrease in livestock production or changed land use, or greenhouse gas emissions, from Finnish agriculture.

Keywords: Agricultural sector modelling, food demand, demand analysis, greenhouse gas mitigation, agricultural policy

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