Estimation of transition costs in the event of taste shocks

AXIS 4: Economic and social issues: drivers and impacts of change.

Estimating transition costs in the event of taste shocks

As part of the PREFALIM project of the PEPR FairCarboN, my colleague Craig Pesme and I are conducting a study to understand how the costs of adapting to changes, such as ecological transition, are affected by changes in individual preferences. Traditionally, economic growth has been measured on the assumption that preferences do not change. If preferences become greener during the ecological transition, traditional indices could overestimate the costs of this transition. We will use detailed data on household food purchases to study these transition costs. This will also allow us to see if wealthier people adapt more quickly to these changes. During my time as a visiting PhD student at Princeton University, I will work with researchers to refine this project before presenting it at scientific conferences.