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Evaluating sectoral effects of agricultural nitrogen pollution reduction policy in Croatia within a CGE framework

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  • Ozana Nadoveza Jelić

    (University of Zagreb
    Croatian National Bank)

  • Jurica Šimurina

    (University of Zagreb)

Abstract

Environmental policies are becoming an important part of agricultural policy portfolio in the EU, which is binding on Croatia. This paper seeks to evaluate potential sectoral effects of several nitrogen pollution reduction policy measures within CGE model for Croatia. Finding appropriate agri-environmental policy design represents a typical optimization problem. Thus, the paper attempts to find potential agri-environmental measures which comply with supranational directives without jeopardizing other economic policy goals. Results show that polluter-pays principle-based measures, if not accompanied by the provider-gets principle measures, could have relatively large negative economy-wide effects in Croatia. However, these effects can be reduced by the appropriate policy mix.

Suggested Citation

  • Ozana Nadoveza Jelić & Jurica Šimurina, 2020. "Evaluating sectoral effects of agricultural nitrogen pollution reduction policy in Croatia within a CGE framework," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-35, December.
  • Handle: RePEc:spr:agfoec:v:8:y:2020:i:1:d:10.1186_s40100-020-0152-6
    DOI: 10.1186/s40100-020-0152-6
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    1. Beckman, Jayson & Ivanic, Maros & Jelliffe, Jeremy L & Baquedano, Felix G & Scott, Sara G, 2020. "Economic and Food Security Impacts of Agricultural Input Reduction Under the European Union Green Deal’s Farm to Fork and Biodiversity Strategies," Economic Brief 327231, United States Department of Agriculture, Economic Research Service.
    2. Jayson Beckman & Maros Ivanic & Jeremy Jelliffe, 2022. "Market impacts of Farm to Fork: Reducing agricultural input usage," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(4), pages 1995-2013, December.

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