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The Use of Organic vs. Chemical Fertilizer with a Mineral Losses Tax: The Case of Dutch Arable Farmers

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  • Eli Feinerman

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  • Marinus Komen

Abstract

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

Suggested Citation

  • Eli Feinerman & Marinus Komen, 2005. "The Use of Organic vs. Chemical Fertilizer with a Mineral Losses Tax: The Case of Dutch Arable Farmers," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(3), pages 367-388, November.
  • Handle: RePEc:kap:enreec:v:32:y:2005:i:3:p:367-388
    DOI: 10.1007/s10640-005-6647-5
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    References listed on IDEAS

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    1. 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 103-118.
    2. 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.
    3. 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.
    4. Feinerman, Eli & Kwan, E. & Johnson, Stanley R., 1990. "Uncertainty and Split Nitrogen Application in Corn Production," Staff General Research Papers Archive 328, Iowa State University, Department of Economics.
    5. 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 231-247.
    6. 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, Springer;European Association of Environmental and Resource Economists, vol. 4(5), pages 455-478, October.
    7. Feinerman, Eli & Choi, E. Kwan & Johnson, Stanley R., 1990. "Uncertainty and Split Nitrogen Application in Corn Production," Staff General Research Papers Archive 10598, Iowa State University, Department of Economics.
    8. 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.
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    Citations

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    Cited by:

    1. Van der Straeten, Bart & Buysse, Jeroen & Nolte, Stephan & Lauwers, Ludwig H. & Claeys, Dakerlia & Van Huylenbroeck, Guido, 2011. "Policy intervention in a concentration permit market: efficiency analysis of obligatory manure processing in Flanders," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114832, European Association of Agricultural Economists.
    2. Line Hansen & Lars Hansen, 2014. "Can Non-point Phosphorus Emissions from Agriculture be Regulated Efficiently Using Input-Output Taxes?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(1), pages 109-125, May.
    3. Laroche Dupraz, C. & Postolle, A., 2013. "Food sovereignty and agricultural trade policy commitments: How much leeway do West African nations have?," Food Policy, Elsevier, vol. 38(C), pages 115-125.
    4. Sasmal, Joydeb & Weikard, Hans-Peter, 0. "Soil Degradation, Policy Intervention and Sustainable Agricultural Growth," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 52.
    5. Van der Straeten, Bart & Buysse, Jeroen & Nolte, Stephan & Marchand, Fleur L. & Lauwers, Ludwig H. & Claeys, Dakerlia & Van Huylenbroeck, Guido, 2008. "A Farm Level Analysis Of The Relation Between Cap Reforms And Local Environmental Legislations: How And In Which Extent Flemish Dairy Farmers Can Fill Up Extra Milk Quota?," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44846, European Association of Agricultural Economists.
    6. Carl Gaigné & Julie Le Gallo & Solène Larue & Bertrand Schmitt, 2011. "Does the regulation of manure land application work against agglomeration economies? Theory and evidence from the French hog sector," Working Papers SMART - LERECO 11-02, INRA UMR SMART-LERECO.

    More about this item

    Keywords

    Dutch growers; environmental tax; fertilization strategies; manure inferiority; non-used nitrogen; ware potatoes; D21; Q12; Q18; Q58;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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