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Using a farm micro-simulation model to evaluate the impact of the nitrogen reduct

Author

Listed:
  • Chyzheuskaya, Aksana
  • O'Donoghue, Cathal
  • O'Neill, Stephen

Abstract

The introduction of the Water Framework Directive in 2000 (European Parliament and Council 2000) has incentivised policy-makers to bring the quality of all water streams in EU member states up to a ‘good ecological status’ by 2015. Although a lot of work has been carried out since the introduction of the Directive, it is also evident that progress in improving water quality has been very slow. The main reason for such slow progress is the lack of robust evidence about the sources of pollution and the effects of possible mitigation measures. Also, there is insufficient knowledge regarding the economic implications of the various mitigation options. In this paper we introduce a microsimulation model that can help policymakers to evaluate the economic impact of Nitrogen (N) mitigation measures. In this initial case study, two measures are considered: 1) a stocking rate reduction to achieve a maximum level of organic nitrogen of 170 kg/ha; 2) a 20 percent stocking rate reduction. The results of this study confirm the hypothesis that introduction of these measures would lead to reduction in farm gross margins, which is consistent with the previous research in Ireland and UK.

Suggested Citation

  • Chyzheuskaya, Aksana & O'Donoghue, Cathal & O'Neill, Stephen, 2014. "Using a farm micro-simulation model to evaluate the impact of the nitrogen reduct," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 3(4), pages 1-11.
  • Handle: RePEc:ags:ijameu:236916
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    References listed on IDEAS

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    1. Carlo Fezzi & Michael Hutchins & Dan Rigby & Ian J. Bateman & Paulette Posen & David Hadley, 2010. "Integrated assessment of water framework directive nitrate reduction measures," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 123-134, March.
    2. Ian J. Bateman & Roy Brouwer & Helen Davies & Brett H. Day & Amelie Deflandre & Salvatore Di Falco & Stavros Georgiou & David Hadley & Michael Hutchins & Andrew P. Jones & David Kay & Graham Leeks & M, 2006. "Analysing the Agricultural Costs and Non-market Benefits of Implementing the Water Framework Directive," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(2), pages 221-237, July.
    3. Carlo Fezzi & Dan Rigby & Ian J. Bateman & David Hadley & Paulette Posen, 2008. "Estimating the range of economic impacts on farms of nutrient leaching reduction policies," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 197-205, September.
    4. Breda Lally & Brendan 'Riordan & Thomas van Rensburg, 2007. "Controlling Agricultural Emissions of Nitrates: Regulation versus Taxes," Working Papers 122, National University of Ireland Galway, Department of Economics, revised 2007.
    5. Doole, Graeme J., 2012. "Cost-effective policies for improving water quality by reducing nitrate emissions from diverse dairy farms: An abatement–cost perspective," Agricultural Water Management, Elsevier, vol. 104(C), pages 10-20.
    6. Griffin, Ronald C. & Montgomery, John M. & Rister, M. Edward, 1987. "Selecting Functional Form In Production Function Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(2), pages 1-12, December.
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