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Integrated assessment of water framework directive nitrate reduction measures

Author

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  • Carlo Fezzi
  • Michael Hutchins
  • Dan Rigby
  • Ian J. Bateman
  • Paulette Posen
  • David Hadley

Abstract

This article illustrates a statistical approach for deriving farm economic impacts of policy options aiming to reduce nitrate diffuse pollution. Building upon Fezzi et al. (2008), who assess the costs of Water Framework Directive‐related measures on farm accounts data, we estimate regression models allowing such costs to be predicted for any region for which land use patterns and livestock numbers are known. We derive economic impacts in terms of changes in farm gross margin for (a) reducing inorganic fertilizer application, (b) reducing livestock stocking rates, and (c) converting arable land to ungrazed grassland. A case study of the agriculturally diverse Yorkshire Derwent catchment, in the North of England, demonstrates the overall approach. In addition, for this illustration, we combine these cost estimates with prediction of the water quality changes arising from each measure, derived via an integrated hydrological model of the Derwent. This allows a comparison of cost‐effectiveness. Finally, we implement our spatially explicit approach to target the measures to specific subcatchments identified as being of particular environmental policy interest.

Suggested Citation

  • 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.
  • Handle: RePEc:bla:agecon:v:41:y:2010:i:2:p:123-134
    DOI: 10.1111/j.1574-0862.2009.00430.x
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    File URL: https://doi.org/10.1111/j.1574-0862.2009.00430.x
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    4. Brouwer, Roy & Hofkes, Marjan & Linderhof, Vincent, 2008. "General equilibrium modelling of the direct and indirect economic impacts of water quality improvements in the Netherlands at national and river basin scale," Ecological Economics, Elsevier, vol. 66(1), pages 127-140, May.
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    6. Brady, Mark, 2003. "The relative cost-efficiency of arable nitrogen management in Sweden," Ecological Economics, Elsevier, vol. 47(1), pages 53-70, November.
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    9. 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.
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    Cited by:

    1. Carlo Fezzi & Ian Bateman & Tom Askew & Paul Munday & Unai Pascual & Antara Sen & Amii Harwood, 2014. "Valuing Provisioning Ecosystem Services in Agriculture: The Impact of Climate Change on Food Production in the United Kingdom," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 57(2), pages 197-214, February.
    2. Martin-Ortega, Julia & Perni, Angel & Jackson-Blake, Leah & Balana, Bedru B. & Mckee, Annie & Dunn, Sarah & Helliwell, Rachel & Psaltopoulos, Demetris & Skuras, Dimitris & Cooksley, Susan & Slee, Bill, 2015. "A transdisciplinary approach to the economic analysis of the European Water Framework Directive," Ecological Economics, Elsevier, vol. 116(C), pages 34-45.
    3. Kreins, P. & Heidecke, C. & Gömann, H. & Hirt, U. & Wendland, F., 2011. "Möglichkeiten und Grenzen der wissenschaftlichen Politikanalyse zur Umsetzung der Wasserrahmenrichtlinie – Anwendung eines hydro-ökonomischen Modellverbundes für das Weser Einzugsgebiet," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 46, March.
    4. Heidecke, Claudia & Kreins, Peter, 2010. "Agricultural costs for reducing nitrogen surpluses in the Weser river basin," 120th Seminar, September 2-4, 2010, Chania, Crete 109380, European Association of Agricultural Economists.
    5. 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.
    6. Petra Kuhr & Josef Haider & Peter Kreins & Ralf Kunkel & Björn Tetzlaff & Harry Vereecken & Frank Wendland, 2013. "Model Based Assessment of Nitrate Pollution of Water Resources on a Federal State Level for the Dimensioning of Agro-environmental Reduction Strategies," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(3), pages 885-909, February.
    7. Kreins, Peter & Heidecke, Claudia & Goemann, Horst & Hirt, Ulrike & Wendland, Frank, 2010. "Möglichkeiten Und Grenzen Der Politikanalyse Zur Umsetzung Der Wasserrahmenrichtlinie -- Anwendung Eines Hydro-Ökonomischen Modellverbundes Für Das Weser Einzugsgebiet," 50th Annual Conference, Braunschweig, Germany, September 29-October 1, 2010 93938, German Association of Agricultural Economists (GEWISOLA).
    8. Aftab, Ashar & Hanley, Nick & Baiocchi, Giovanni, 2017. "Transferability of Policies to Control Agricultural Nonpoint Pollution in Relatively Similar Catchments," Ecological Economics, Elsevier, vol. 134(C), pages 11-21.
    9. Vincent Linderhof & Stijn Reinhard, 2011. "Cost-effectiveness analysis of nutrients abatement measures for the EU Water Framework Directive: a regional model for the Beerze and Reusel river basin in the Netherlands (refereed paper)," ERSA conference papers ersa10p969, European Regional Science Association.

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