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Determining Socially Optimal Nitrogen Application Rates Using A Delayed Response Model: The Case Of Irrigated Corn In Western Kansas

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  • Nkonya, Ephraim M.
  • Featherstone, Allen M.

Abstract

Nitrate contamination of groundwater is an important problem. The transport of leached nitrate from the root zone to groundwater takes approximately 30 to 60 years. Many previous studies ignore this time lag by assuming instantaneous contamination. This analysis applies a delayed response model to account for the time lag between nitrogen fertilizer applications to the time the leached nitrate reaches groundwater. Results show that accounting for the leached nitrate externality reduces the nitrogen application rate by 13% and the returns above variable costs by 8% for farmers who apply both nitrogen and phosphorus. For farmers who do not use phosphorus, nitrogen use is reduced by 14% and the returns above variable costs by 22%. The application of phosphorous increased returns by more than 100% and significantly reduced leached nitrate.

Suggested Citation

  • Nkonya, Ephraim M. & Featherstone, Allen M., 2000. "Determining Socially Optimal Nitrogen Application Rates Using A Delayed Response Model: The Case Of Irrigated Corn In Western Kansas," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-15, December.
    • Handle: RePEc:ags:jlaare:30889
    DOI: 10.22004/ag.econ.30889
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    References listed on IDEAS

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    1. Llewelyn, Richard V. & Featherstone, Allen M., 1997. "A comparison of crop production functions using simulated data for irrigated corn in western Kansas," Agricultural Systems, Elsevier, vol. 54(4), pages 521-538, August.
    2. Darrell J. Bosch & Zena L. Cook & Keith O. Fuglie, 1995. "Voluntary versus Mandatory Agricultural Policies to Protect Water Quality: Adoption of Nitrogen Testing in Nebraska," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 17(1), pages 13-24.
    3. Jon Conrad & Lars Olson, 1992. "The economics of a stock pollutant: Aldicarb on Long Island," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(3), pages 245-258, May.
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    1. Sihvonen, Matti & Pihlainen, Sampo & Lai, Tin-Yu & Salo, Tapio & Hyytiäinen, Kari, 2021. "Crop production, water pollution, or climate change mitigation—Which drives socially optimal fertilization management most?," Agricultural Systems, Elsevier, vol. 186(C).
    2. Kenneth A. Baerenklau & Nermin Nergis & Kurt A. Schwabe, 2008. "Effects of Nutrient Restrictions on Confined Animal Facilities: Insights from a Structural‐Dynamic Model," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(2), pages 219-241, June.
    3. Yusuke Kuwayama & Nicholas Brozović, 2017. "Optimal Management of Environmental Externalities with Time Lags and Uncertainty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 473-499, November.
    4. Baerenklau, Kenneth A. & Nergis, Nermin, 2006. "Controlling Dairy Nitrogen Emissions: A Dynamic Analysis of Herd Adjustment, Ground Water Discharges, and Air Emissions," 2006 Annual meeting, July 23-26, Long Beach, CA 21448, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Hart, Rob, 2003. "Dynamic pollution control--time lags and optimal restoration of marine ecosystems," Ecological Economics, Elsevier, vol. 47(1), pages 79-93, November.
    6. Baerenklau, Kenneth A. & Nergis, Nermin & Schwabe, Kurt A., 2007. "Effects of Nutrient Restrictions on Confined Animal Facilities: Insights from a Structural Model," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 10253, Western Agricultural Economics Association.
    7. Sanchari Ghosh & Keith Willett, 2012. "Empirical Assessment of the quantity-quality tradeoff for the Ogallala: A case study from West Texas," Economics Working Paper Series 1201, Oklahoma State University, Department of Economics and Legal Studies in Business.
    8. Schwabe, Kurt A. & Knapp, Keith C., 2005. "Nitrogen as a Capital Input and Stock Pollutant: A Dynamic Analysis of Corn Production and Nitrogen Leaching under Non-Uniform Irrigation," 2005 Annual meeting, July 24-27, Providence, RI 19466, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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