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The Economic Benefits to Agriculture of a Reduction of Low-Level Ozone Pollution in the Netherlands

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  • Kuik, O J, et al

Abstract

Low-level ozone pollution affects crop yields adversely. Reduction of ozone pollution would therefore increase crop yields and provide economic benefits to producers and consumers of farm products. This paper assesses the potential magnitude of these benefits for the Netherlands. Exposure-response functions were used to estimate initial yield responses when ozone pollution is reduced to natural background levels. These yield responses were fed into a spatial economic model of the Dutch farm sector, thereby allowing for demand and supply adjustments in all interrelated markets. A novelty in this analysis is the explicit attention to crop-livestock interactions. The annual economic benefits of ozone reduction for producers and consumers of farm products are estimated to be 310 million euros, of which 91 million goes to producers and 219 million to consumers. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Kuik, O J, et al, 2000. "The Economic Benefits to Agriculture of a Reduction of Low-Level Ozone Pollution in the Netherlands," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 27(1), pages 75-90, March.
    • Handle: RePEc:oup:erevae:v:27:y:2000:i:1:p:75-90
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    Cited by:

    1. Kar, Saibal & Majumdar, Devleena, 2021. "Transboundary pollution, land use and abatement policy," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 169-175.
    2. Fournier, Anne J., 2018. "Direct-selling farming and urban externalities: What impact on product quality and market size?," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 97-111.
    3. Neeliah, Harris & Shankar, Bhavani, 2005. "Ozone Externalities on Crop Production: Insights from UK Farm Level Data," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24659, European Association of Agricultural Economists.

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