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The Use of Organic vs. Chemical Fertilizer with a Mineral Losses Tax: The Case of Dutch Arable Farmers

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  • Eli Feinerman

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  • Marinus Komen
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    Abstract

    The paper focuses on farm-level nitrogen fertilization strategies of Dutch arable farmers for analyzing the substitution of organic fertilizers (manure) with chemical fertilizers. The model developed investigates the impact of the major parameters affecting the inferiority of manure compared with chemical fertilizers, including the low availability and non-uniformity of the nitrogen in manure, and the low level and high non-uniformity of plant-available nitrogen supplied via manure. The sensitivity of the optimal fertilization decisions and its associated environmental impact to product price, manure cost, and environmental tax is also examined. The theoretical analysis is applied to a representative Dutch grower of ware potatoes in the northern part of the Netherlands. The results suggest that in the absence of a subsidy the representative farmer will prefer to apply nitrogen only via chemical fertilizers. Copyright Springer 2005

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    File URL: http://hdl.handle.net/10.1007/s10640-005-6647-5
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    Bibliographic Info

    Article provided by European Association of Environmental and Resource Economists in its journal Environmental & Resource Economics.

    Volume (Year): 32 (2005)
    Issue (Month): 3 (November)
    Pages: 367-388

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    Handle: RePEc:kap:enreec:v:32:y:2005:i:3:p:367-388

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    Web page: http://www.springerlink.com/link.asp?id=100263

    Related research

    Keywords: Dutch growers; environmental tax; fertilization strategies; manure inferiority; non-used nitrogen; ware potatoes; D21; Q12; Q18; Q58;

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    Cited by:
    1. Van der Straeten, Bart & Buysse, Jeroen & Nolte, Stephan & Lauwers, Ludwig H. & Claeys, Dakerlia & Van Huylenbroeck, Guido, 2011. "Policy intervention in a concentration permit market: efficiency analysis of obligatory manure processing in Flanders," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114832, European Association of Agricultural Economists.
    2. Carl Gaigné & Julie Le Gallo & Solène Larue & Bertrand Schmitt, 2011. "Does the regulation of manure land application work against agglomeration economies? Theory and evidence from the French hog sector," Working Papers SMART - LERECO 11-02, INRA UMR SMART.
    3. Line Hansen & Lars Hansen, 2014. "Can Non-point Phosphorus Emissions from Agriculture be Regulated Efficiently Using Input-Output Taxes?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 58(1), pages 109-125, May.
    4. Sasmal, Joydeb & Weikard, Hans-Peter, 0. "Soil Degradation, Policy Intervention and Sustainable Agricultural Growth," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 52.
    5. Catherine Laroche Dupraz & Angèle Postolle, 2011. "Food sovereignty and agricultural trade policy commitments: How much leeway do West African nations have?," Working Papers SMART - LERECO 11-03, INRA UMR SMART.
    6. Van der Straeten, Bart & Buysse, Jeroen & Nolte, Stephan & Marchand, Fleur L. & Lauwers, Ludwig H. & Claeys, Dakerlia & Van Huylenbroeck, Guido, 2008. "A Farm Level Analysis Of The Relation Between Cap Reforms And Local Environmental Legislations: How And In Which Extent Flemish Dairy Farmers Can Fill Up Extra Milk Quota?," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44846, European Association of Agricultural Economists.

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