The Use of Organic vs. Chemical Fertilizer with a Mineral Losses Tax: The Case of Dutch Arable Farmers
The paper focuses on farm-level nitrogen fertilization strategies of Dutch arable farmers for analyzing the substitution of organic fertilizers (manure) with chemical fertilizers. The model developed investigates the impact of the major parameters affecting the inferiority of manure compared with chemical fertilizers, including the low availability and non-uniformity of the nitrogen in manure, and the low level and high non-uniformity of plant-available nitrogen supplied via manure. The sensitivity of the optimal fertilization decisions and its associated environmental impact to product price, manure cost, and environmental tax is also examined. The theoretical analysis is applied to a representative Dutch grower of ware potatoes in the northern part of the Netherlands. The results suggest that in the absence of a subsidy the representative farmer will prefer to apply nitrogen only via chemical fertilizers. Copyright Springer 2005
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Volume (Year): 32 (2005)
Issue (Month): 3 (November)
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- Feinerman, Eli & Kwan, E. & Johnson, Stanley R., 1990. "Uncertainty and Split Nitrogen Application in Corn Production," Staff General Research Papers 328, Iowa State University, Department of Economics.
- Philippe Bontems & Alban Thomas, 2000. "Information Value and Risk Premium in Agricultural Production: The Case of Split Nitrogen Application for Corn," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 59-70.
- Feinerman, Eli & Choi, E. Kwan & Johnson, Stanley R., 1990. "Uncertainty and Split Nitrogen Application in Corn Production," Staff General Research Papers 10598, Iowa State University, Department of Economics.
- Lansink, Alfons Oude & Peerlings, Jack, 1997. "Effects of N-Surplus Taxes: Combining Technical and Historical Information," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 24(2), pages 231-47.
- Peter Fontein & Geert Thijssen & Jan Magnus & Jan Dijk, 1994. "On levies to reduce the nitrogen surplus: The case of Dutch pig farms," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 4(5), pages 455-478, October.
- Robert Innes, 2000. "The Economics of Livestock Waste and Its Regulation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 97-117.
- Feinerman, Eli & Voet, Hillary, 1995. "Dynamic Optimisation of Nitrogen Fertilisation of Citrus and the Value of Information from Leaf Tissue Analysis," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 22(1), pages 103-18.
- Fontein, P.F. & Thijssen, G.J. & Magnus, J.R. & Dijk, J., 1994. "On levies to reduce the nitrogen surplus : The case of Dutch pig farms," Other publications TiSEM 80174da5-111a-4bed-a740-8, Tilburg University, School of Economics and Management.
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