“…There is extensive literature on the impact of a carbon tax in the energy or transport sector (Andersson, 2019; Best et al, 2020; Hájek et al, 2019). The literature that deals with a carbon tax in the agriculture or food sector is also relatively broad for developed economies (Briggs et al, 2013; Caillavet et al, 2019; Forero‐Cantor et al, 2020; Roosen et al, 2022; Säll, 2018) but is limited in the context of emerging or developing economies (Renner et al, 2018; Saelim, 2019; Sofyan, 2011). Further, most of the previous literature uses estimated elasticities from empirical demand systems to approximate the welfare change measured by compensating variation (CV) (Roosen et al, 2022; Säll, 2018).…”