In this post, Tyler Cowen describes the relationship between animal welfare and shifting consumption among meat, dairy, and the like. His analysis is very similar to Chapter 8 of my upcoming book where I model the link between dairy, poultry, beef, veal, and egg consumption and animal welfare. My model agrees with Cowen in that replacing beef with milk and cheese may lead to a reduction in animal welfare. I even find that replacing cage eggs with cage-free eggs could also reduce animal welfare. I believe I'm more optimistic about the lives of dairy cows than Tyler, despite the recent undercover PETA video.