IDEAS home Printed from https://ideas.repec.org/a/eee/agisys/v184y2020ics0308521x20307502.html
   My bibliography  Save this article

Analysis of the effect of alternative agri-environmental policy instruments on production performance and nitrogen surplus of representative dairy farms

Author

Listed:
  • Adenuga, Adewale Henry
  • Davis, John
  • Hutchinson, George
  • Patton, Myles
  • Donnellan, Trevor

Abstract

Nitrogen (N) surplus is an important environmental problem on the island of Ireland (Northern Ireland and the Republic of Ireland), and the dairy sector has been identified as contributing more to this problem compared to other agricultural sectors. As a result, there has been increased demand for efficient policy measures to improve the economic and environmental performance of dairy farms in the region. In this study, we employed the positive mathematical programming (PMP) optimization modelling framework to simulate the economic and environmental impact of two alternative agri-environmental policy instruments on different dairy farm types. Specifically, the study considers the effects of an N surplus tax and an agri-environmental nutrient application standard on the production performance and N surplus of representative dairy farms using scenario analyses. The results of the analyses showed that the effects of the agri-environmental policy instruments vary across the two countries and clusters of dairy farms, resulting in clear differential effects on farm structure and N surpluses. The study concluded that in situations where the nutrient surplus is already high, as with the large farms clusters in this study, the use of manure application standards will be more effective in limiting nutrient surplus to soils compared to the use of nutrient surplus tax.

Suggested Citation

  • Adenuga, Adewale Henry & Davis, John & Hutchinson, George & Patton, Myles & Donnellan, Trevor, 2020. "Analysis of the effect of alternative agri-environmental policy instruments on production performance and nitrogen surplus of representative dairy farms," Agricultural Systems, Elsevier, vol. 184(C).
    • Handle: RePEc:eee:agisys:v:184:y:2020:i:c:s0308521x20307502
    DOI: 10.1016/j.agsy.2020.102889
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308521X20307502
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.agsy.2020.102889?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Helming, John F.M. & Peerlings, Jack H.M., 2002. "The Impact of Milk Quota Abolishment on Dutch Agriculture and Economy: Applying an Agricultural Sector Model Integrated Into a Mixed Input-Output Model," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24911, European Association of Agricultural Economists.
    2. Helming, John, 1998. "Effects of nitrogen input and nitrogen surplus taxes in Dutch agriculture," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 49.
    3. Adenuga, Adewale Henry & Davis, John & Hutchinson, George & Donnellan, Trevor & Patton, Myles, 2018. "Estimation and determinants of phosphorus balance and use efficiency of dairy farms in Northern Ireland: A within and between farm random effects analysis," Agricultural Systems, Elsevier, vol. 164(C), pages 11-19.
    4. Quirino Paris & Richard E. Howitt, 1998. "An Analysis of Ill-Posed Production Problems Using Maximum Entropy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 124-138.
    5. Matthews, Alan, 2013. "Greening agricultural payments in the EU’s Common Agricultural Policy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(1), pages 1-27, April.
    6. Silke Huettel & Roel Jongeneel, 2011. "How has the EU milk quota affected patterns of herd-size change?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 38(4), pages 497-527, October.
    7. Richard H. Day, 1963. "On Aggregating Linear Programming Models of Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 45(4), pages 797-813.
    8. Shrestha, Shailesh & Hennessy, Thia & Abdalla, Mohamed & Forristal, Dermot & Jones, Michael B., 2014. "Determining Short Term Responses of Irish Dairy Farms under Climate Change," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 63(03), pages 1-13, September.
    9. Mack, Gabriele & Huber, Robert, 2017. "On-farm compliance costs and N surplus reduction of mixed dairy farms under grassland-based feeding systems," Agricultural Systems, Elsevier, vol. 154(C), pages 34-44.
    10. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    11. Heckelei, Thomas & Britz, Wolfgang, 2005. "Models Based on Positive Mathematical Programming: State of the Art and Further Extensions," 89th Seminar, February 2-5, 2005, Parma, Italy 234607, European Association of Agricultural Economists.
    12. John Helming, 1998. "Effects of nitrogen input and nitrogen surplus taxes in Dutch agriculture," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 49, pages 5-31.
    13. Louhichi, Kamel & Kanellopoulos, Argyris & Janssen, Sander & Flichman, Guillermo & Blanco, Maria & Hengsdijk, Huib & Heckelei, Thomas & Berentsen, Paul & Lansink, Alfons Oude & Ittersum, Martin Van, 2010. "FSSIM, a bio-economic farm model for simulating the response of EU farming systems to agricultural and environmental policies," Agricultural Systems, Elsevier, vol. 103(8), pages 585-597, October.
    14. John Helming, 1998. "Effects of nitrogen input and nitrogen surplus taxes in Dutch agriculture," Post-Print hal-01200911, HAL.
    15. Shrestha, Shailesh & Hennessy, Thia & Abdalla, Mohamed & Forristal, Dermot & Jones, Michael B., 2014. "Determining Short Term Responses of Irish Dairy Farms under Climate Change," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(3).
    16. Arfini, Filippo & Donati, Michele & Zuppiroli, Marco & Paris, Quirino, 2005. "Positive Mathematical Programming Approach for Ex-post Evaluation of Set Aside in Italy," 89th Seminar, February 2-5, 2005, Parma, Italy 231828, European Association of Agricultural Economists.
    17. Adewale Henry Adenuga & John Davis & George Hutchinson & Trevor Donnellan & Myles Patton, 2019. "Environmental Efficiency and Pollution Costs of Nitrogen Surplus in Dairy Farms: A Parametric Hyperbolic Technology Distance Function Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1273-1298, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adewale Henry Adenuga & Claire Jack & Ronan McCarry, 2021. "The Case for Long-Term Land Leasing: A Review of the Empirical Literature," Land, MDPI, vol. 10(3), pages 1-21, March.
    2. Javier Martínez-Dalmau & Julio Berbel & Rafaela Ordóñez-Fernández, 2021. "Nitrogen Fertilization. A Review of the Risks Associated with the Inefficiency of Its Use and Policy Responses," Sustainability, MDPI, vol. 13(10), pages 1-15, May.
    3. Georgina Milne & Andrew William Byrne & Emma Campbell & Jordon Graham & John McGrath & Raymond Kirke & Wilma McMaster & Jesko Zimmermann & Adewale Henry Adenuga, 2022. "Quantifying Land Fragmentation in Northern Irish Cattle Enterprises," Land, MDPI, vol. 11(3), pages 1-16, March.
    4. Adewale H. Adenuga & Claire Jack & Austen Ashfield & Michael Wallace, 2021. "Assessing the Impact of Participatory Extension Programme Membership on Farm Business Performance in Northern Ireland," Agriculture, MDPI, vol. 11(10), pages 1-12, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Solazzo, Roberto & Pierangeli, Fabio, 2016. "How does greening affect farm behaviour? Trade-off between commitments and sanctions in the Northern Italy," Agricultural Systems, Elsevier, vol. 149(C), pages 88-98.
    2. Ehrmann, M., 2011. "Assessing ecological and economic impacts of policy scenarios," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 46, March.
    3. Hartmann, M. & Hediger, W. & Peter, S., 2008. "Reducing nitrogen losses from agricultural systems – an integrated economic assessment," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 43, March.
    4. Philippe Le Goffe & Julien Salanie, 2005. "Pricing manure spreading rights: measure from the land market," Post-Print hal-02338151, HAL.
    5. Kamel Louhichi & Hugo Valin, 2012. "Impact of EU biofuel policies on the French arable sector: A micro-level analysis using global market and farm-based supply models," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 93(3), pages 233-272.
    6. Fragoso, R. & Marques, C. & Lucas, M.R. & Martins, M.B. & Jorge, R., 2011. "The economic effects of common agricultural policy on Mediterranean montado/dehesa ecosystem," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 311-327, March.
    7. Philippe Le Goffe & Dominique Vermersch, 2004. "Le marché de l'épandage peut-il réduire le coût de la résorption des excédents d'azote ?," Économie rurale, Programme National Persée, vol. 279(1), pages 20-32.
    8. Gallego-Ayala, Jordi & Gómez-Limón Rodríguez, José A., 2010. "Evaluación del impacto de la tarifación del agua de riego sobre la sostenibilidad del regadío: una aproximación a través de indicadores sintéticos/Impact assessment of irrigation water pricing in irri," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 28, pages 375-404, Agosto.
    9. Takahiro Nakashima & Shoko Ishikawa, 2022. "Exploring Farmers’ Expectation toward Farm-Gate Price of Rice in Japan by Positive Mathematical Programming," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    10. Arfini, Filippo & Donati, Michele & Marongiu, Sonia & Cesaro, Luca, 2012. "Farm production costs estimation trough PMP Models: an application in three Italian Regions," 2012 First Congress, June 4-5, 2012, Trento, Italy 124117, Italian Association of Agricultural and Applied Economics (AIEAA).
    11. Arfini, Filippo & Donati, Michele & Grossi, L. & Paris, Quirino, 2008. "Revenue and Cost Functions in PMP: a Methodological Integration for a Territorial Analysis of CAP," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6636, European Association of Agricultural Economists.
    12. Arfini, Filippo & Donati, Michele & Paris, Quirino, 2008. "Innovation in Estimation of Revenue and Cost Functions in PMP Using FADN Information at Regional Level," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44008, European Association of Agricultural Economists.
    13. Whittaker, Gerald & Färe, Rolf & Grosskopf, Shawna & Barnhart, Bradley & Bostian, Moriah & Mueller-Warrant, George & Griffith, Stephen, 2017. "Spatial targeting of agri-environmental policy using bilevel evolutionary optimization," Omega, Elsevier, vol. 66(PA), pages 15-27.
    14. Rui Fragoso & Carlos Marques & Maria Raquel Lucas & Maria Belém Martins & Raúl Fernandes Jorge, 2009. "The Economic Effects of Common Agricultural Policy Trends on Montado Ecosystem in Southern Portugal," CEFAGE-UE Working Papers 2009_12, University of Evora, CEFAGE-UE (Portugal).
    15. Louhichi, Kamel & Gomez y Paloma, Sergio, 2014. "A farm household model for agri-food policy analysis in developing countries: Application to smallholder farmers in Sierra Leone," Food Policy, Elsevier, vol. 45(C), pages 1-13.
    16. Cortignani, Raffaele & Severini, Simone, 2010. "The impact of reforming the Common Agricultural Policy on the sustainability of the irrigated area of Central Italy. An empirical assessment by means of a Positive Mathematical Programming model," 120th Seminar, September 2-4, 2010, Chania, Crete 109318, European Association of Agricultural Economists.
    17. Lee, Hwarang & Eom, Jiyong & Cho, Cheolhung & Koo, Yoonmo, 2019. "A bottom-up model of industrial energy system with positive mathematical programming," Energy, Elsevier, vol. 173(C), pages 679-690.
    18. Heckelei, Thomas & Britz, Wolfgang & Zhang, Yinan, 2012. "Positive Mathematical Programming Approaches – Recent Developments in Literature and Applied Modelling," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 1(1), pages 1-16, April.
    19. He, Lixia & Horbulyk, Theodore M. & Ali, Md. Kamar & Le Roy, Danny G. & Klein, K.K., 2012. "Proportional water sharing vs. seniority-based allocation in the Bow River basin of Southern Alberta," Agricultural Water Management, Elsevier, vol. 104(C), pages 21-31.
    20. Belhouchette, Hatem & Louhichi, Kamel & Therond, Olivier & Mouratiadou, Ioanna & Wery, Jacques & Ittersum, Martin van & Flichman, Guillermo, 2011. "Assessing the impact of the Nitrate Directive on farming systems using a bio-economic modelling chain," Agricultural Systems, Elsevier, vol. 104(2), pages 135-145, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:agisys:v:184:y:2020:i:c:s0308521x20307502. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/agsy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.