IDEAS home Printed from https://ideas.repec.org/a/bla/canjag/v56y2008i2p219-241.html
   My bibliography  Save this article

Effects of Nutrient Restrictions on Confined Animal Facilities: Insights from a Structural‐Dynamic Model

Author

Listed:
  • Kenneth A. Baerenklau
  • Nermin Nergis
  • Kurt A. Schwabe

Abstract

Nutrient emissions from animal feeding operations continue to degrade water and air quality. New regulations will limit the amounts of nutrients that can be locally applied to land. In this paper, a structural‐dynamic model of a livestock‐crop operation is calibrated with data from a representative farm and is used to predict the effects of nitrogen regulations. Policy simulations clarify the importance of dynamic elements and demonstrate three main results: (1) cost estimates for large producers are higher than suggested by previous studies; (2) cross‐media pollution effects are potentially significant; and (3) improved input management appears most promising for reducing both water and air emissions and waste management costs. Implications for policy and future research are discussed. Les émissions d'éléments nutritifs provenant des exploitations d'élevage continuent de dégrader la qualité de l'eau et de l'air. De nouveaux règlements limiteront les quantités d'éléments nutritifs qui pourront être appliqués localement sur les terres. Dans le présent article, un modèle structurel dynamique d'exploitation mixte (élevage‐culture) a étéétalonné d'après des données tirées d'une exploitation typique et a été utilisé pour prédire les répercussions des règlements sur la gestion de l'azote. Des simulations de politiques clarifient l'importance des éléments dynamiques et démontrent trois résultats principaux: 1. l'évaluation des coûts dans le cas des grosses exploitations est plus élevée que celle déterminée dans des études antérieures; 2. les effets de la pollution touchant plusieurs milieux sont potentiellement importants; 3. une meilleure gestion des intrants semble plus prometteuse pour réduire les émissions dans l'eau et l'air et pour réduire les coûts de gestion des déchets. Nous traitons des implications pour la politique et la recherche future.

Suggested Citation

  • Kenneth A. Baerenklau & Nermin Nergis & Kurt A. Schwabe, 2008. "Effects of Nutrient Restrictions on Confined Animal Facilities: Insights from a Structural‐Dynamic Model," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(2), pages 219-241, June.
  • Handle: RePEc:bla:canjag:v:56:y:2008:i:2:p:219-241
    DOI: 10.1111/j.1744-7976.2008.00126.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1744-7976.2008.00126.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1744-7976.2008.00126.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jean-Paul Chavas & Richard M. Klemme, 1986. "Aggregate Milk Supply Response and Investment Behavior on U.S. Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 55-66.
    2. Kaplan, Jonathan D. & Johansson, Robert C., 2004. "A Carrot-and-Stick Approach to Environmental Improvement: Marrying Agri-Environmental Payments and Water Quality Regulations," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(1), pages 1-14, April.
    3. Latacz-Lohmann, Uwe & Hodge, Ian D., 2003. "European agri-environmental policy for the 21st century," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(1), pages 1-17.
    4. Marc Ribaudo & Andrea Cattaneo & Jean Agapoff, 2004. "Cost of Meeting Manure Nutrient Application Standards in Hog Production: The Roles of EQIP and Fertilizer Offsets," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(4), pages 430-444.
    5. Keith C. Knapp & Kurt A. Schwabe, 2008. "Spatial Dynamics of Water and Nitrogen Management in Irrigated Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 524-539.
    6. Knapp, Keith C. & Schwabe, Kurt A., 2008. "AJAE Appendix: Spatial Dynamics of Water and Nitrogen Management in Irrigated Agriculture," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 90(2), pages 1-17.
    7. Ribaudo, Marc & Agapoff, Jean, 2005. "Importance of Cost Offsets for Dairy Farms Meeting a Nutrient Application Standard," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(2), pages 173-184, October.
    8. Huang, Wen-yuan & Magleby, Richard & Christensen, Lee, 2005. "Economic Impacts of EPA's Manure Application Regulations on Dairy Farms with Lagoon Liquid Systems in the Southwest Region," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 37(1), pages 209-227, April.
    9. Nkonya, Ephraim M. & Featherstone, Allen M., 2000. "Determining Socially Optimal Nitrogen Application Rates Using A Delayed Response Model: The Case Of Irrigated Corn In Western Kansas," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-15, December.
    10. Johansson, Robert C. & Kaplan, Jonathan D., 2004. "A Carrot-and-Stick Approach to Environmental Improvement: Marrying Agri-Environmental Payments and Water Quality Regulations," Agricultural and Resource Economics Review, Cambridge University Press, vol. 33(1), pages 91-104, April.
    11. Jonathan D. Kaplan & Robert C. Johansson & Mark Peters, 2004. "The Manure Hits the Land: Economic and Environmental Implications When Land Application of Nutrients Is Constrained," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 688-700.
    12. Ribaudo, Marc & Weinberg, Marca, 2006. "Improving Air and Water Quality Can Be Two Sides of the Same Coin," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-7, July.
    13. Schnitkey, Gary D. & Miranda, Mario J., 1993. "The Impact Of Pollution Controls On Livestock-Crop Producers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(1), pages 1-12, July.
    14. Luc Anselin & Rodolfo Bongiovanni & Jess Lowenberg-DeBoer, 2004. "A Spatial Econometric Approach to the Economics of Site-Specific Nitrogen Management in Corn Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 675-687.
    15. Huang, Wen-Yuan & Magleby, Richard S. & Christensen, Lee A., 2005. "Economic Impacts of EPA's Manure Application Regulations on Dairy Farms with Lagoon Liquid Systems in the Southwest Region," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(1), pages 1-19, April.
    16. Greg W. Vos & Alfons Weersink & D. Peter Stonehouse, 2003. "Economic-Environmental Tradeoffs in Swine Finishing Operations," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(1), pages 55-60, March.
    17. Gollehon, Noel R. & Caswell, Margriet & Ribaudo, Marc & Kellogg, Robert L. & Lander, Charles & Letson, David, 2000. "Confined Animal Production And Manure Nutrients," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36382, Western Agricultural Economics Association.
    18. Cassells, Sue M. & Meister, Anton D., 2001. "Cost and trade impacts of environmental regulations: effluent control and the New Zealand dairy sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-18.
    19. Steven S. Vickner & Dana L. Hoag & W. Marshall Frasier & James C. Ascough, 1998. "A Dynamic Economic Analysis of Nitrate Leaching in Corn Production under Nonuniform Irrigation Conditions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 397-408.
    20. Richard B. Standiford & Richard E. Howitt, 1992. "Solving Empirical Bioeconomic Models: A Rangeland Management Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 421-433.
    21. Aillery, Marcel P. & Gollehon, Noel R. & Johansson, Robert C. & Kaplan, Jonathan D. & Key, Nigel D. & Ribaudo, Marc, 2005. "Managing Manure To Improve Air And Water Quality," Economic Research Report 33593, United States Department of Agriculture, Economic Research Service.
    22. Elwin G. Smith & Gordon Card & Douglas L. Young, 2006. "Effects of Market and Regulatory Changes on Livestock Manure Management in Southern Alberta," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(2), pages 199-213, June.
    23. Tozer, Peter R. & Huffaker, Ray G., 1999. "Dairy Deregulation And Low-Input Dairy Production: A Bioeconomic Evaluation," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-18, July.
    24. Satya N. Yadav, 1997. "Dynamic Optimization of Nitrogen Use When Groundwater Contamination Is Internalized at the Standard in the Long Run," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 931-945.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Iho, Antti & Parker, Doug & Zilberman, David, 2015. "Optimal Regional Regulation of Animal Waste," 2015 Conference, August 9-14, 2015, Milan, Italy 211780, International Association of Agricultural Economists.
    2. Iho, Antti & Parker, Doug & Zilberman, David, 2013. "Optimal Regional Policies to Control Manure Nutrients to Surface and Ground Waters," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149922, Agricultural and Applied Economics Association.
    3. Duke, Joshua M. & Borchers, Allison M. & Johnston, Robert J. & Absetz, Sarah, 2012. "Sustainable agricultural management contracts: Using choice experiments to estimate the benefits of land preservation and conservation practices," Ecological Economics, Elsevier, vol. 74(C), pages 95-103.
    4. Wang, Jingjing, 2022. "Harnessing natural attenuation to reduce CAFOs nitrate emissions: An integrated modeling approach," Ecological Economics, Elsevier, vol. 199(C).
    5. Niskanen, Olli & Iho, Antti & Kalliovirta, Leena, 2020. "Scenario for structural development of livestock production in the Baltic littoral countries," Agricultural Systems, Elsevier, vol. 179(C).
    6. Iho, Antti, 2013. "Optimal Regional Policies to Control Manure Nutrients to Surface and GroundWaters," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158683, Agricultural Economics Society.
    7. Lotjonen, S. & Temmes, E. & Ollikainen, M., 2018. "Spatial model of dairy farm management, nutrient runoff and greenhouse gas emissions: Private and social optima," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277111, International Association of Agricultural Economists.
    8. Antti Belinskij & Antti Iho & Tiina Paloniitty & Niko Soininen, 2019. "From Top–Down Regulation to Bottom–Up Solutions: Reconfiguring Governance of Agricultural Nutrient Loading to Waters," Sustainability, MDPI, vol. 11(19), pages 1-14, September.
    9. Sanna Lötjönen & Esa Temmes & Markku Ollikainen, 2020. "Dairy Farm Management when Nutrient Runoff and Climate Emissions Count," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(3), pages 960-981, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Baerenklau, Kenneth A. & Nergis, Nermin & Schwabe, Kurt A., 2007. "Effects of Nutrient Restrictions on Confined Animal Facilities: Insights from a Structural Model," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 10253, Western Agricultural Economics Association.
    2. Baerenklau, Kenneth A. & Nergis, Nermin, 2006. "Controlling Dairy Nitrogen Emissions: A Dynamic Analysis of Herd Adjustment, Ground Water Discharges, and Air Emissions," 2006 Annual meeting, July 23-26, Long Beach, CA 21448, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Iho, Antti & Parker, Doug & Zilberman, David, 2015. "Optimal Regional Regulation of Animal Waste," 2015 Conference, August 9-14, 2015, Milan, Italy 211780, International Association of Agricultural Economists.
    4. O'Donoghue, Erik J. & MacDonald, James M. & Nehring, Richard F., 2005. "At What Rate Do Farmers Substitute Manure For Commercial Fertilizers?," 2005 Annual meeting, July 24-27, Providence, RI 19252, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Iho, Antti & Parker, Doug & Zilberman, David, 2013. "Optimal Regional Policies to Control Manure Nutrients to Surface and Ground Waters," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149922, Agricultural and Applied Economics Association.
    6. Iho, Antti, 2013. "Optimal Regional Policies to Control Manure Nutrients to Surface and GroundWaters," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158683, Agricultural Economics Society.
    7. James Shortle & Richard D. Horan, 2017. "Nutrient Pollution: A Wicked Challenge for Economic Instruments," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 1-39, April.
    8. Johansson, Robert & Peters, Mark & House, Robert, 2007. "Regional Environment and Agriculture Programming Model," Technical Bulletins 184314, United States Department of Agriculture, Economic Research Service.
    9. Sanna Lötjönen & Esa Temmes & Markku Ollikainen, 2020. "Dairy Farm Management when Nutrient Runoff and Climate Emissions Count," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(3), pages 960-981, May.
    10. Ribaudo, Marc & Agapoff, Jean, 2005. "Importance of Cost Offsets for Dairy Farms Meeting a Nutrient Application Standard," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(2), pages 1-12, October.
    11. Aillery, Marcel P. & Gollehon, Noel R. & Johansson, Robert C. & Kaplan, Jonathan D. & Key, Nigel D. & Ribaudo, Marc, 2005. "Managing Manure To Improve Air And Water Quality," Economic Research Report 33593, United States Department of Agriculture, Economic Research Service.
    12. Johansson, Robert C. & Livingston, Michael J. & Westra, John V. & Guidry, Kurt M., 2006. "Simulating the U.S. Impacts of Alternative Asian Soybean Rust Treatment Regimes," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), pages 1-12, April.
    13. Hubert Stahn & Agnes Tomini, 2014. "On the Environmental Efficiency of Water Storage: The Case of a Conjunctive Use of Ground and Rainwater," Working Papers halshs-01083461, HAL.
    14. Pamela Katic, 2015. "Groundwater Spatial Dynamics and Endogenous Well Location," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(1), pages 181-196, January.
    15. Yusuke Kuwayama & Nicholas Brozović, 2017. "Optimal Management of Environmental Externalities with Time Lags and Uncertainty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 473-499, November.
    16. Key, Nigel D. & McBride, William D. & Mosheim, Roberto, 2008. "Decomposition of Total Factor Productivity Change in the U.S. Hog Industry," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(1), pages 1-13, April.
    17. Phoebe Koundouri, 2004. "Current Issues in the Economics of Groundwater Resource Management," Journal of Economic Surveys, Wiley Blackwell, vol. 18(5), pages 703-740, December.
    18. Sneeringer, Stacy & Hogle, Regina, 2008. "Variation in Environmental Regulations in California and Effects on Dairy Location," Agricultural and Resource Economics Review, Cambridge University Press, vol. 37(2), pages 133-146, October.
    19. Johansson, Robert C. & Cooper, Joseph & Vasavada, Utpal, 2005. "Greener Acres or Greener Waters? Potential U.S. Impacts of Agricultural Trade Liberalization," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(1), pages 42-53, April.
    20. Pamela Giselle Katic, 2010. "Spatial dynamics and optimal resource extraction," Centre for Water Economics, Environment and Policy Papers 1002, Centre for Water Economics, Environment and Policy, Crawford School of Public Policy, The Australian National University.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:canjag:v:56:y:2008:i:2:p:219-241. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/caefmea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.