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Best Management Practices and Nutrient Reduction: An Integrated Economic-Hydrological Model of the Western Lake Erie Basin

Author

Listed:
  • Liu, Hongxing
  • Zhang, Wendong
  • Irwin, Elena G.
  • Kast, Jeffrey
  • Aloysius, Noel
  • Martin, Jay
  • Kalcic, Margaret

Abstract

We develop the first spatially integrated economic-hydrological model of the western Lake Erie basin explicitly linking economic models of farmers' field-level Best Management Practice (BMP) adoption choices with the Soil and Water Assessment Tool (SWAT) model to evaluate nutrient management policy cost-effectiveness. We quantify tradeoffs among phosphorus reduction policies and find that a hybrid policy coupling a fertilizer tax with cost-share payments for subsurface placement is the most cost-effective, and when implemented with a 200% tax can achieve the stated policy goal of 40% reduction in nutrient loadings. We also find economic adoption models alone can overstate the potential for BMPs to reduce nutrient loadings by ignoring biophysical complexities.
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Suggested Citation

  • Liu, Hongxing & Zhang, Wendong & Irwin, Elena G. & Kast, Jeffrey & Aloysius, Noel & Martin, Jay & Kalcic, Margaret, 2018. "Best Management Practices and Nutrient Reduction: An Integrated Economic-Hydrological Model of the Western Lake Erie Basin," 2018 Annual Meeting, August 5-7, Washington, D.C. 274426, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea18:274426
    DOI: 10.22004/ag.econ.274426
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    References listed on IDEAS

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    More about this item

    Keywords

    Resource and Environmental Policy Analysis; Environmental and Nonmarket Valuation; Food and Agricultural Policy Analysis;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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