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Modeling Cumulative Effects of Nutrient Surpluses in Agriculture: A Dynamic Approach to Material Balance Accounting

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  • Kuosmanen, Natalia
  • Kuosmanen, Timo

Abstract

Nutrients such as nitrogen and phosphorus have a dual role as inputs to crop production and as pollutants to water, air, and soil. The nutrient surplus measures are frequently used as indicators of environmental performance or eco-efficiency at micro level of individual farms and at macro levels of regions and countries. However, the static material balance accounting ignores an important dimension of the nutrient cycle: the time. Nutrients accumulate in soil, causing delayed effects and persistent harm to the environment. In this paper we propose a dynamic model of material balance, following the standard model of capital accumulation used in production economics. Using data of agricultural production in Finland in the years 1961–2009, we show that it is possible to estimate the stocks of nitrogen and phosphorus accumulated in the soil using information and data that are readily available. The dynamic model allows us to estimate not only the stocks of nutrients, but also the outflow of nutrients to water and air. Better understanding of flows and stocks of nutrients can provide insights to support managerial and policy decisions.

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  • Kuosmanen, Natalia & Kuosmanen, Timo, 2013. "Modeling Cumulative Effects of Nutrient Surpluses in Agriculture: A Dynamic Approach to Material Balance Accounting," Ecological Economics, Elsevier, vol. 90(C), pages 159-167.
    • Handle: RePEc:eee:ecolec:v:90:y:2013:i:c:p:159-167
    DOI: 10.1016/j.ecolecon.2013.03.016
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    2. 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.
    3. K Hervé Dakpo & Philippe Jeanneaux & Laure Latruffe, 2014. "Inclusion of undesirable outputs in production technology modeling:The case of greenhouse gas emissions in French meat sheep farming," Working Papers SMART 14-08, INRAE UMR SMART.
    4. Ke Wang & Zhifu Mi & Yi‐Ming Wei, 2019. "Will Pollution Taxes Improve Joint Ecological and Economic Efficiency of Thermal Power Industry in China?: A DEA‐Based Materials Balance Approach," Journal of Industrial Ecology, Yale University, vol. 23(2), pages 389-401, April.
    5. Annageldy Arazmuradov, 2016. "Economic prospect on carbon emissions in Commonwealth of Independent States," Economic Change and Restructuring, Springer, vol. 49(4), pages 395-427, November.
    6. Alfons Oude Lansink & Alan Wall, 2014. "Frontier models for evaluating environmental efficiency: an overview," Economics and Business Letters, Oviedo University Press, vol. 3(1), pages 43-50.
    7. De Almeida Furtado, Murilo & Meuwissen, Miranda P.M. & Ang, Frederic, 2024. "Land reallocation to increase production and reduce nitrogen surplus: impacts on crop diversity in England and Wales," 2024 Annual Meeting, July 28-30, New Orleans, LA 343878, Agricultural and Applied Economics Association.
    8. Reijnders, L., 2014. "Phosphorus resources, their depletion and conservation, a review," Resources, Conservation & Recycling, Elsevier, vol. 93(C), pages 32-49.
    9. Kuosmanen, Natalia, 2014. "Estimating stocks and flows of nitrogen: Application of dynamic nutrient balance to European agriculture," Ecological Economics, Elsevier, vol. 108(C), pages 68-78.

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