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Abatement costs for agricultural nitrogen and phosphorus loads: a case study of South-Western Finland

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  • Koikkalainen, Kauko
  • Laukkanen, Marita
  • Helin, Janne

Abstract

Designing efficient agri-environmental policies for agricultural nutrient load reductions calls for information on the costs of emission reduction measures. This study develops an empirical framework for estimating abatement costs for nutrient loading from agricultural land. Nitrogen abatement costs and the phosphorus load reductions associated with nitrogen abatement are derived for crop farming in southern Finland. The model is used to evaluate the effect of the Common Agricultural Policy reform currently underway on nutrient abatement costs. Results indicate that an efficiently designed policy aimed at a 50 % reduction in agricultural nitrogen load would cost $25 to $28 million, or $1995 to $2197 per farm.

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File URL: http://purl.umn.edu/11867
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Bibliographic Info

Paper provided by MTT Agrifood Research Finland in its series Discussion Papers with number 11867.

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Date of creation: 2006
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Handle: RePEc:ags:mttfdp:11867

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Keywords: Environmental Economics and Policy;

References

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  1. Berntsen, J. & Petersen, B. M. & Jacobsen, B. H. & Olesen, J. E. & Hutchings, N. J., 2003. "Evaluating nitrogen taxation scenarios using the dynamic whole farm simulation model FASSET," Agricultural Systems, Elsevier, vol. 76(3), pages 817-839, June.
  2. Johansson, Robert C. & Gowda, Prasanna H. & Mulla, David J. & Dalzell, Brent J., 2004. "Metamodelling phosphorus best management practices for policy use: a frontier approach," Agricultural Economics, Blackwell, vol. 30(1), pages 63-74, January.
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Citations

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Cited by:
  1. Line Block Hansen & Lars Gårn Hansen, 2012. "Can Non-point Phosphorus Emissions from Agriculture be Regulated efficiently using Input-Output Taxes?," IFRO Working Paper 2012/4, University of Copenhagen, Department of Food and Resource Economics.
  2. Halkos, George, 2013. "Cost-effectiveness analysis in reducing nutrient loading in Baltic and Black Seas: A review," MPRA Paper 52296, University Library of Munich, Germany.
  3. Timo Kuosmanen & Marita Laukkanen, 2011. "(In)Efficient Environmental Policy with Interacting Pollutants," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 48(4), pages 629-649, April.
  4. Helin, Janne & Tattari, Sirkka, 2010. "How much can be gained by optimizing nutrient abetment spatially – Cost – efficiency comparison of non – point arable loads from different Finnish watersheds," 120th Seminar, September 2-4, 2010, Chania, Crete 109381, European Association of Agricultural Economists.
  5. Hyytiäinen, Kari & Huhtala, Anni, 2011. "Combating eutrophication in coastal areas at risk for oil spills," MPRA Paper 38087, University Library of Munich, Germany.
  6. Kuosmanen, Timo & Laukkanen, Marita, 2009. "(In)Efficient Management of Interacting Environmental Bads," Discussion Papers 54287, MTT Agrifood Research Finland.
  7. Marita Laukkanen & Anni Huhtala, 2008. "Optimal management of a eutrophied coastal ecosystem: balancing agricultural and municipal abatement measures," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 39(2), pages 139-159, February.
  8. Iho, Antti & Laukkanen, Marita, 2009. "Dynamically Optimal Phosphorus Management and Agricultural Water Protection," Discussion Papers 54285, MTT Agrifood Research Finland.
  9. Vesterinen, Janne & Pouta, Eija, 2008. "Water recreation benefits from reduced eutrophication in Finnish surface waters," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43848, European Association of Agricultural Economists.
  10. Helin, Janne, 2009. "Does geography matter in nutrient abatement? Bioeconomic model of heteregoneus farm nutrient loads," 2009 Conference, August 16-22, 2009, Beijing, China 51693, International Association of Agricultural Economists.
  11. Hyytiainen, Kari & Ahtiainen, Heini & Heikkila, Jaakko & Helin, Janne & Huhtala, Anni & Iho, Antti & Koikkalainen, Kauko & Miettinen, Antti & Pouta, Eija & Vesterinen, Janne, 2009. "An integrated simulation model to evaluate national policies for the abatement of agricultural nutrients in the Baltic Sea," Discussion Papers 49896, MTT Agrifood Research Finland.
  12. Laukkanen, Marita & Nauges, Céline, 2009. "Environmental and Production Cost Impact of No-Till: Estimates from Observed Behavior," TSE Working Papers 09-125, Toulouse School of Economics (TSE).
  13. Helin, Janne, 2008. "Environmental protection of agriculture -clash of policies?," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6468, European Association of Agricultural Economists.
  14. Marita Laukkanen & Céline Nauges, 2012. "Evaluating greening farm policies: A structural model for assessing agri-environmental subsidies," Working Papers 40, Government Institute for Economic Research Finland (VATT).

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