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Land Use Permits As An Alternative To Fertiliser And Leaching Taxes For The Control Of Nitrate Pollution

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  • Jia Hua Pan
  • Ian Hodge

Abstract

Legislation emanating from the European Community is establishing pressures to take action to reduce the level of nitrates in water, and the principles established towards environmental management indicate an emphasis on prevention rather than treatment. This paper analyses three possible approaches by means of controls on fertilisers, on nitrate leaching and on land use. These are incorporated into a linear programming model of a catchment in Cambridgeshire. The results indicate the superior cost‐effectiveness of controls over leaching and the severe impact which taxes would have on farm incomes. A system of permits on land use is found to be relatively cost‐effective and to offer an administratively feasible alternative.

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  • Jia Hua Pan & Ian Hodge, 1994. "Land Use Permits As An Alternative To Fertiliser And Leaching Taxes For The Control Of Nitrate Pollution," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(1), pages 102-112, January.
    • Handle: RePEc:bla:jageco:v:45:y:1994:i:1:p:102-112
    DOI: 10.1111/j.1477-9552.1994.tb00381.x
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    1. Scott L. Johnson & Richard M. Adams & Gregory M. Perry, 1991. "The On-Farm Costs of Reducing Groundwater Pollution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1063-1073.
    2. Andreasson, Ing-Marie, 1990. "Costs for reducing farmers' use of nitrogen in Gotland, Sweden," Ecological Economics, Elsevier, vol. 2(4), pages 287-299, December.
    3. Stevens, Brandt K., 1988. "Fiscal implications of effluent charges and input taxes," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 285-296, September.
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    1. Qiu, Zeyuan & Prato, Anthony A., 1999. "Accounting For Spatial Characteristics Of Watersheds In Evaluating Water Pollution Abatement Policies," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(1), pages 1-15, April.
    2. Ferrant, Sylvain & Durand, Patrick & Justes, Eric & Probst, Jean-Luc & Sanchez-Perez, José-Miguel, 2013. "Simulating the long term impact of nitrate mitigation scenarios in a pilot study basin," Agricultural Water Management, Elsevier, vol. 124(C), pages 85-96.
    3. Kampas, Athanasios, 2001. "Identifying Common Fallacies in the Choice of Environmental Taxes for Agricultural Pollution Control: The Absence of Transaction Costs and the Normality of Agricultural Pollutants," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 2(2), pages 1-15, August.
    4. Lacroix, A. & Bel, F. & Mollard, A. & Sauboua, E., 2004. "Interest of site-specific pollution control policies," Working Papers 200424, Grenoble Applied Economics Laboratory (GAEL).
    5. 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.
    6. Ibendahl, Gregory & Fleming, Ronald A., 2007. "Controlling aquifer nitrogen levels when fertilizing crops: A study of groundwater contamination and denitrification," Ecological Modelling, Elsevier, vol. 205(3), pages 507-514.
    7. Xabadia, Angels & Goetz, Renan U. & Zilberman, David, 2006. "Control of accumulating stock pollution by heterogeneous producers," Journal of Economic Dynamics and Control, Elsevier, vol. 30(7), pages 1105-1130, July.
    8. Aihoon, John Komo & Groenewald, Jan A. & von Bach, Helmke J. Sartorius, 1997. "The Potential Use Of Pollution Insurance As Environmental Policy: An Empirical Analysis," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(2), pages 1-22, June.
    9. Athanasios Kampas & Ben White, 2004. "Administrative Costs and Instrument Choice for Stochastic Non-point Source Pollutants," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 27(2), pages 109-133, February.
    10. Anastasia Lintner & Alfons Weersink, 1999. "Endogenous Transport Coefficients: Implications for Improving Water Quality from Multi-Contaminants in an Agricultural Watershed," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 14(2), pages 269-296, September.
    11. Morgan, Cynthia L. & Coggins, Jay S. & Eidman, Vernon R., 2000. "Tradable Permits For Controlling Nitrates In Groundwater At The Farm Level: A Conceptual Model," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(2), pages 1-10, August.
    12. Weersink, Alfons & Dutka, Charray & Goss, Michael, 1996. "Crop Price And Risk Effects On Farmer Abatement Costs Of Reducing Nitrate Levels In Groundwater Imposed By Environmental Policy Instruments," Working Papers 244794, University of Guelph, Department of Food, Agricultural and Resource Economics.
    13. Kampas, Athanasios & White, Ben, 2003. "Probabilistic programming for nitrate pollution control: Comparing different probabilistic constraint approximations," European Journal of Operational Research, Elsevier, vol. 147(1), pages 217-228, May.

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