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Mitigation and Heterogeneity in Management Practices on New Zealand Dairy Farms

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  • Anastasiadis, Simon
  • Kerr, Suzi

Abstract

We consider two approaches to quantify New Zealand farmers’ ability to mitigate their farm’s environmental impact: The construction of marginal abatement cost curves and improvements in farm management practices. Marginal abatement cost curves can be constructed by combining information on the effectiveness of mitigation with cost data. However, we find that the available data is not sufficient to support this approach. We consider improvements in management practices using a distribution of farm production efficiency with regard to nitrogen and greenhouse gas (kg production per unit of emissions). Where differences in production efficiency are due to factors that can be managed by farmers, targeting less efficient farmers to encourage the adoption of management practices similar to those of the more efficient farmers is a potential mitigation strategy.

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Bibliographic Info

Paper provided by New Zealand Agricultural and Resource Economics Society in its series 2012 Conference, August 31, 2012, Nelson, New Zealand with number 136039.

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Date of creation: Aug 2012
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Handle: RePEc:ags:nzar12:136039

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Web page: http://www.nzares.org.nz/
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Related research

Keywords: Cost curves; greenhouse gas; heterogeneity; leaching; mitigation; nitrogen; production efficiency; Agribusiness; Environmental Economics and Policy; Farm Management; Land Economics/Use; Production Economics; Q53; Q57;

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  1. Ridler, B.J. & Anderson, W.J. & Fraser, P., 2010. "Milk, money, muck and metrics: inefficient resource allocation by New Zealand dairy farmers," 2010 Conference, August 26-27, 2010, Nelson, New Zealand 96492, New Zealand Agricultural and Resource Economics Society.
  2. Graeme J. Doole, 2010. "Evaluating Input Standards for Non-Point Pollution Control under Firm Heterogeneity," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(3), pages 680-696.
  3. Doole, Graeme J. & Pannell, David J., 2009. "Nonpoint pollution policy evaluation under ambiguity," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48036, Australian Agricultural and Resource Economics Society.
  4. Anna Strutt & Allan N. Rae, 2011. "Modelling the Impact of Policies to Reduce Environmental Impacts in the New Zealand Dairy Sector," Working Papers in Economics 11/04, University of Waikato, Department of Economics.
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