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Optimal Regional Policies to Control Manure Nutrients to Surface and Ground Waters

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  • Iho, Antti
  • Parker, Doug
  • Zilberman, David

Abstract

Current day large animal facilities generate more manure than they need on their own feed production areas. Excessive nutrient applications deteriorate groundwater (nitrogen) and surface water quality (nitrogen and/or phosphorus). Due to differences in environmental and economic characteristics, adjacent regions may have differing objectives for nitrogen and phosphorus abatement. We postulate an analytical model of upstream agricultural and downstream recreational regions, and analyze optimal policies that consider both regions. We show that depending on the environmental and economic characteristics, tightening upstream regulation with respect to loading of one nutrient only might increase the downstream loading of the other. As the prevailing regulatory tool for livestock production is the Nutrient Management Plan based on nitrogen standard; and because livestock production is the main source of man-made nutrient loads to environment, the model is of high importance. Our model contributes to literature by i) differentiating (the impacts of) manure regulation between the livestock farm and the adjacent crop production farm ii) showing how this differentiation is carried over to relative and absolute amounts of nitrogen and phosphorus loading due to changes in nutrient application and uptake; and due to changes in application areas iii) allowing for regional differences in abatement objectives.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 149922.

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Date of creation: 2013
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Handle: RePEc:ags:aaea13:149922

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Keywords: Manure; Transboundary Pollution; Phosphorus; Nitrogen; Regulation; Externality; Environmental Economics and Policy; Livestock Production/Industries; Public Economics; Q18; Q53; R50;

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  1. Robert Innes, 2000. "The Economics of Livestock Waste and Its Regulation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 97-117.
  2. Thomas H. Tietenberg, 1980. "Transferable Discharge Permits and the Control of Stationary Source Air Pollution: A Survey and Synthesis," Land Economics, University of Wisconsin Press, vol. 56(4), pages 391-416.
  3. Huang, Wen-Yuan & Magleby, Richard & 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(01), April.
  4. Karl-Göran Mäler & Aart De Zeeuw, 1998. "The Acid Rain Differential Game," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 12(2), pages 167-184, September.
  5. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521311120, April.
  6. 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(01), July.
  7. Fleming, Ronald & Babcock, Bruce A. & Wang, Erda, 1998. "Resource or Waste? The Economics of Swine Manure Storage and Management," Staff General Research Papers 1087, Iowa State University, Department of Economics.
  8. List, John A. & Mason, Charles F., 2001. "Optimal Institutional Arrangements for Transboundary Pollutants in a Second-Best World: Evidence from a Differential Game with Asymmetric Players," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 277-296, November.
  9. Hilary Sigman, 2004. "Transboundary Spillovers and Decentralization of Environmental Policies," NBER Working Papers 10717, National Bureau of Economic Research, Inc.
  10. 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.
  11. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, April.
  12. Hochman, Eithan & Zilberman, David, 1979. "Two-goal environmental policy: An integration of micro and micro ad hoc decision rules," Journal of Environmental Economics and Management, Elsevier, vol. 6(2), pages 152-174, June.
  13. Zeeuw, A.J. de, 1998. "The acid rain differential game," Open Access publications from Tilburg University urn:nbn:nl:ui:12-77117, Tilburg University.
  14. 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.
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