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How cost-effective is a mixed policy targeting the management of three pollutants from N-fertilizers

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  • Cyril Bourgeois
  • Nosra Ben-Fradj
  • Mélissa Clodic
  • Pierre-Alain Jayet

Abstract

This paper assesses the cost-effectiveness of a mixed policy in attempts to curb three nitrogen pollutants: NO3, N20 and NH3. The policy under study combines an N-tax on nitrogen input and incentives promoting perennial crops assumed to require low input. We show that opting for a perennial crop subsidy, in addition to an N-tax, significantly increases tax effectiveness in the case of N03. A quantitative analysis provides an assessment of impacts in terms of land-use, farmers' income and N losses throughout France and at the river-basin scale.

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File URL: https://www6.versailles-grignon.inra.fr/economie_publique/Media/fichiers/Working-Papers/Working-Papers-2011/2011_03
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Bibliographic Info

Paper provided by INRA, Economie Publique in its series Working Papers with number 2011/03.

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Date of creation: 31 Jul 2011
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Handle: RePEc:apu:wpaper:2011/03

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Keywords: Cost-effectiveness; mixed policy; N-input tax; Lans-use policy; nitrogen pollutants; bio-economic model; mathematical linear programming;

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  1. Ashar Aftab & Giovanni Baiocchi & Nick Hanley, 2009. "Integrated Regulation of Nonpoint Pollution: Combining Managerial Controls and Economic Instruments under Multiple Environmental Targets," Working Papers 2009_03, Durham University Business School.
  2. Lankoski, Jussi & Ollikainen, Markku, 2011. "Biofuel policies and the environment: Do climate benefits warrant increased production from biofuel feedstocks?," Ecological Economics, Elsevier, vol. 70(4), pages 676-687, February.
  3. Renan-Ulrich Goetz & Hansjörg Schmid & Bernard Lehmann, 2006. "Determining the economic gains from regulation at the extensive and intensive margins," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(1), pages 1-30, March.
  4. Lacroix, Anne & Beaudoin, Nicolas & Makowski, David, 2005. "Agricultural water nonpoint pollution control under uncertainty and climate variability," Ecological Economics, Elsevier, vol. 53(1), pages 115-127, April.
  5. Balana, Bedru Babulo & Vinten, Andy & Slee, Bill, 2011. "A review on cost-effectiveness analysis of agri-environmental measures related to the EU WFD: Key issues, methods, and applications," Ecological Economics, Elsevier, vol. 70(6), pages 1021-1031, April.
  6. Jussi Lankoski & Markku Ollikainen, 2008. "Bioenergy crop production and climate policies: a von Thunen model and the case of reed canary grass in Finland," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(4), pages 519-546, December.
  7. Stephane De Cara & Martin Houzé & Pierre-Alain Jayet, 2005. "Methane and nitrous oxide emissions from agriculture in the EU : a spatial assessment of sources and abatement costs," Working Papers 156815, Institut National de la Recherche Agronomique, France.
  8. Ashar Aftab & Nick Hanley & Athanasios Kampas, 2007. "Co-ordinated environmental regulation: controlling non-point nitrate pollution while maintaining river flows," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 38(4), pages 573-593, December.
  9. James Shortle & David Abler & Richard Horan, 1998. "Research Issues in Nonpoint Pollution Control," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(3), pages 571-585, April.
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