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International Versus National Actions Against Nitrogen Pollution of the Baltic Sea

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  • Ing-Marie Gren

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Abstract

Large nitrogen loads to the Baltic Sea play an important role for currentdamages caused by eutrophication: large sea bottom areas without anybiological life, low stocks of cods, and toxic blue green algae. In spite of therelatively large supply of biological and physical data on the sea,difficulties remain with respect to linking costs of nitrogen reductions withthe dispersion of associated benefits among countries. The purpose of thisstudy is therefore to analyse and calculate efficient nitrogen reductionsand associated net benefits under international co-ordination of nitrogenreductions and single country actions for two different specifications ofmarginal benefits: uniform and differentiated. Further, comparisons aremade with the current ministerial agreement of 50 per cent nitrogenreduction to the Baltic Sea. The empirical results show that total netbenefits under internationally co-ordinated actions are considerablyhigher than when countries act on their own. Another result is thatdifferentiated benefits give higher total net benefits than uniform, and alsoimply larger differences in net benefits among countries. However, resultsindicate that uniform marginal benefits generate net benefits for allcountries from co-ordinated actions as compared to single country actions. Copyright Kluwer Academic Publishers 2001

Suggested Citation

  • Ing-Marie Gren, 2001. "International Versus National Actions Against Nitrogen Pollution of the Baltic Sea," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(1), pages 41-59, September.
  • Handle: RePEc:kap:enreec:v:20:y:2001:i:1:p:41-59
    DOI: 10.1023/A:1017512113454
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    References listed on IDEAS

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    1. Ing-Marie Gren & Paul Jannke & Katarina Elofsson, 1997. "Cost-Effective Nutrient Reductions to the Baltic Sea," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 10(4), pages 341-362, December.
    2. Markowska, Agnieszka & Zylicz, Tomasz, 1999. "Costing an international public good: the case of the Baltic Sea," Ecological Economics, Elsevier, vol. 30(2), pages 301-316, August.
    3. Kaitala, Veijo & Maler, Karl-Goran & Tulkens, Henry, 1995. " The Acid Rain Game as a Resource Allocation Process with an Application to the International Cooperation among Finland, Russia and Estonia," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(2), pages 325-343, June.
    4. Turner, R. Kerry & Georgiou, Stavros & Gren, Ing-Marie & Wulff, Fredric & Barrett, Scott & Soderqvist, Tore & Bateman, Ian J. & Folke, Carl & Langaas, Sindre & Zylicz, Tomasz, 1999. "Managing nutrient fluxes and pollution in the Baltic: an interdisciplinary simulation study," Ecological Economics, Elsevier, vol. 30(2), pages 333-352, August.
    5. Bystrom, Olof, 1998. "The nitrogen abatement cost in wetlands," Ecological Economics, Elsevier, vol. 26(3), pages 321-331, September.
    6. Gren, Ing-Marie, 1999. "Value of land as a pollutant sink for international waters," Ecological Economics, Elsevier, vol. 30(3), pages 419-431, September.
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    Cited by:

    1. Lankoski, Jussi & Ollikainen, Markku, 2013. "Counterfactual approach for assessing agri-environmental policy: The case of the Finnish water protection policy," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 94(02), pages 165-193, June.
    2. Lankoski, Jussi & Ollikainen, Markku, 2011. "Biofuel policies and the environment: Do climate benefits warrant increased production from biofuel feedstocks?," Ecological Economics, Elsevier, vol. 70(4), pages 676-687, February.
    3. Chabé-Ferret, Sylvain & Subervie, Julie, 2013. "How much green for the buck? Estimating additional and windfall effects of French agro-environmental schemes by DID-matching," Journal of Environmental Economics and Management, Elsevier, vol. 65(1), pages 12-27.
    4. Fröschl, Lena & Pierrard, Roger & Schönbäck, Wilfried, 2008. "Cost-efficient choice of measures in agriculture to reduce the nitrogen load flowing from the Danube River into the Black Sea: An analysis for Austria, Bulgaria, Hungary and Romania," Ecological Economics, Elsevier, vol. 68(1-2), pages 96-105, December.
    5. Marita Laukkanen & Anni Huhtala, 2008. "Optimal management of a eutrophied coastal ecosystem: balancing agricultural and municipal abatement measures," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 39(2), pages 139-159, February.
    6. Honkatukia, Juha & Ollikainen, Markku, 2001. "Towards Efficient Pollution Control in the Baltic Sea. An anatomy of current failure with suggestions," Discussion Papers 755, The Research Institute of the Finnish Economy.
    7. Gren, Ing-Marie, 2008. "Adaptation and mitigation strategies for controlling stochastic water pollution: An application to the Baltic Sea," Ecological Economics, Elsevier, vol. 66(2-3), pages 337-347, June.
    8. Joachim Fünfgelt & Günther G. Schulze, 2011. "Endogenous Environmental Policy when Pollution is Transboundary," Working Paper Series in Economics 196, University of Lüneburg, Institute of Economics.
    9. Laukkanen, Marita & Nauges, Celine, 2012. "Impact of agri‐environmental policies on farming practices and nutrient loading," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia 124347, Australian Agricultural and Resource Economics Society.
    10. Pamela Kaval & Matthew Roskruge, 2009. "The Value of Native Bird Conservation: A New Zealand Case Study," Working Papers in Economics 09/11, University of Waikato.
    11. Basak Bayramoglu, 2006. "Transboundary Pollution in the Black Sea: Comparison of Institutional Arrangements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 35(4), pages 289-325, December.
    12. Katarina Elofsson, 2007. "Cost Uncertainty and Unilateral Abatement," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(2), pages 143-162, February.
    13. Sergey Rabotyagov & Catherine L. Kling & Philip W. Gassman & Nancy N. Rabalais & R. Eugene Turner, 2012. "Economics of Dead Zones: Linking Externalities from the Land to their Consequences in the Sea, The," Center for Agricultural and Rural Development (CARD) Publications 12-wp534, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    14. Kari Hyytiäinen & Anni Huhtala, 2014. "Combating eutrophication in coastal areas at risk for oil spills," Annals of Operations Research, Springer, vol. 219(1), pages 101-121, August.
    15. Elofsson, Katarina & Folmer, Henk & Gren, Ing-Marie, 2003. "Management of eutrophicated coastal ecosystems: a synopsis of the literature with emphasis on theory and methodology," Ecological Economics, Elsevier, vol. 47(1), pages 1-11, November.
    16. Ing-Marie Gren & Paul Jannke & Katarina Elofsson, 1997. "Cost-Effective Nutrient Reductions to the Baltic Sea," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 10(4), pages 341-362, December.
    17. Gren, Ing-Marie & Jonzon, Ylva & Lindqvist, Martin, 2008. "Costs of nutrient reductions to the Baltic Sea," Department of Economics publications 3212, Swedish University of Agricultural Sciences, Department of Economics.

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