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Implications of alternative environmental policies on phosphorus loading from poultry litter

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  • Ramu Govindasamy
  • Mark J. Cochran

Abstract

Degraded groundwater, impaired swimming, fishing, algae and weed problem are often associated with eutrophication from phosphorus (P) loadings in surface and groundwater. The concentrated growth of poultry industry and over application of litter on pasture lands may lead to excessive nutrient loadings in surface and groundwater. The Cooperative Extension Service recommendation suggests that no poultry litter should be applied if the soil test P exceeds 300 pounds per acre, irrespective of the marginal costs and benefits associated with one more unit of litter application on that piece of land. The objective of this paper is to model the economics of P loadings from poultry litter and analyze the policy implications of Cooperative Extension Service's recommendation on quantity restriction on litter applications with empirical evidence. The results indicate that there exists significant difference in the marginal values of soil between different soil series, indicating that the permit system can achieve the target at a lesser cost. In particular, the society as a whole can gain $2.7 per acre by allocating the litter to soil series 16 instead of soil series 20, provided that the contribution towards groundwater contamination from these two acres are the same.

Suggested Citation

  • Ramu Govindasamy & Mark J. Cochran, 1995. "Implications of alternative environmental policies on phosphorus loading from poultry litter," Agricultural Economics, International Association of Agricultural Economists, vol. 13(2), pages 137-148, November.
    • Handle: RePEc:bla:agecon:v:13:y:1995:i:2:p:137-148
    DOI: 10.1111/j.1574-0862.1995.tb00383.x
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    1. Govindasamy, Ramu & Cochran, Mark J., 1995. "The Feasibility Of Poultry Litter Transportation From Environmentally Sensitive Areas To Delta Row Crop Production," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(1), pages 1-10, April.
    2. Govindasamy, Ramu & Huffman, Wallace, 1993. "Efficiency of U.S. conservation-compliance program," Agricultural Economics, Blackwell, vol. 8(2), pages 173-185, February.
    3. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, January.
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    1. Jones, Kezelee Q. & D'Souza, Gerard E., 2001. "Trading Poultry Litter At The Watershed Level : A Goal Focusing Application," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 30(1), pages 1-10, April.
    2. Richard J. Thomas & Emmanuelle Quillérou & Naomi Stewart, 2013. "The rewards of investing in sustainable land management," Working Papers hal-01954823, HAL.
    3. Mitchell, David M. & Willett, Keith, 2012. "Modeling Transactions Costs in a Regional Transferable Discharge Permit System for Phosphorus Runoff," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 42(2), pages 1-13.
    4. Johansson, Robert C. & Gowda, Prasanna H. & Mulla, David J. & Dalzell, Brent J., 2004. "Metamodelling phosphorus best management practices for policy use: a frontier approach," Agricultural Economics, Blackwell, vol. 30(1), pages 63-74, January.

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