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Markets of concentration permits: The case of manure policy

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  • der Straeten, Bart Van
  • Buysse, Jeroen
  • Nolte, Stephan
  • Lauwers, Ludwig
  • Claeys, Dakerlia
  • Van Huylenbroeck, Guido

Abstract

Concentration permits are regarded as an interesting policy tool for regulating emissions where, besides absolute amounts, also local concentration is important. However, effects of governance structure, trading system and possible policy interventions in the permits' allocation are not yet well analysed and understood. This paper explores in how far tradable fertilisation standards can be seen as a concentration permit trading (CPT) system which can be fine-tuned for further policy intervention. Indeed fertilisation standards such as obliged by the EU Nitrate Directive can be regarded as local nitrate emissions limits, and thus concentration permits. A multi-agent spatial allocation model is used to simulate the impact of defining the manure problem in terms of concentration permits rather than conventional emission permits. Impacts are simulated in terms of environmental performance and increased reallocation costs. The model is applied on the Flemish manure problem.

Suggested Citation

  • der Straeten, Bart Van & Buysse, Jeroen & Nolte, Stephan & Lauwers, Ludwig & Claeys, Dakerlia & Van Huylenbroeck, Guido, 2011. "Markets of concentration permits: The case of manure policy," Ecological Economics, Elsevier, vol. 70(11), pages 2098-2104, September.
  • Handle: RePEc:eee:ecolec:v:70:y:2011:i:11:p:2098-2104
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    References listed on IDEAS

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    Cited by:

    1. Stefan Borsky & Alexej Parchomenko, 2017. "Identifying Phosphorus Hot Spots: A spatial analysis of the phosphorus balance as a result of manure application," Graz Economics Papers 2017-04, University of Graz, Department of Economics.
    2. Nielsen, Rasmus, 2012. "Introducing individual transferable quotas on nitrogen in Danish fresh water aquaculture: Production and profitability gains," Ecological Economics, Elsevier, vol. 75(C), pages 83-90.
    3. Willeghems, G. & De Clercq, L. & Michels, E. & Meers, E. & Buysse, J., 2016. "Can spatial reallocation of livestock reduce the impact of GHG emissions?," Agricultural Systems, Elsevier, vol. 149(C), pages 11-19.
    4. Buysse, Jeroen & Frija, Aymen & Van der Straeten, Bart & Nolte, Stephan & Lauwers, Ludwig H. & Claeys, Dakerlia & Van Huylenbroeck, Guido, 2011. "The sampling bias in multi-agent simulation models," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99599, European Association of Agricultural Economists.
    5. Van der Straeten, Bart & Buysse, Jeroen & Nolte, Stephan & Lauwers, Ludwig H. & Claeys, Dakerlia & Van Huylenbroeck, Guido, 2011. "The effect of EU derogation strategies on the complying costs of the nitrate directive," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99426, European Association of Agricultural Economists.
    6. Buysse, Jeroen & Van der Straeten, Bart & Nolte, Stephan & Claeys, Dakerlia & Lauwers, Ludwig H. & Van Huylenbroeck, Guido, 2010. "Optimisation of policy interventions in environmental quota," 114th Seminar, April 15-16, 2010, Berlin, Germany 61084, European Association of Agricultural Economists.

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