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The effect of EU derogation strategies on the complying costs of the nitrate directive

Author

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  • Van der Straeten, Bart
  • Buysse, Jeroen
  • Nolte, Stephan
  • Lauwers, Ludwig H.
  • Claeys, Dakerlia
  • Van Huylenbroeck, Guido

Abstract

Within the framework of the nitrate directive, member states have the possibility to apply for derogation, i.e. increasing fertilization standards under certain conditions. Several EU regions have made use of this possibility but all in a different way. In 2009, 6 different derogation policies were worked out. This paper focuses on the differences between the applied policies and makes an assessment of the impact of these differences on the application rate of derogation, the manure surplus and the costs to allocate the manure. Based on the MP-MAS model described by Van der Straeten et al. (2010) the different scenarios are applied on a single case area (Flanders) and the economic effects have been simulated. Results show large differences between the policy alternatives, leading to the conclusion that member states not only have to focus on the permission to allow derogation or not but also at the details of the derogation policy. Granting derogation at parcel level instead of farm level increases the potential effect of derogation, the height of the increase in fertilization standards under derogation determines the application rate of derogation: a higher increase leads to a higher application rate.

Suggested Citation

  • Van der Straeten, Bart & Buysse, Jeroen & Nolte, Stephan & Lauwers, Ludwig H. & Claeys, Dakerlia & Van Huylenbroeck, Guido, 2011. "The effect of EU derogation strategies on the complying costs of the nitrate directive," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99426, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa122:99426
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    File URL: http://purl.umn.edu/99426
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    1. der Straeten, Bart Van & Buysse, Jeroen & Nolte, Stephan & Lauwers, Ludwig & Claeys, Dakerlia & Van Huylenbroeck, Guido, 2011. "Markets of concentration permits: The case of manure policy," Ecological Economics, Elsevier, vol. 70(11), pages 2098-2104, September.
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    Keywords

    Nitrate directive; MAS-model; derogation; Flanders; Agricultural and Food Policy; Q12; Q18; Q51; Q52;

    JEL classification:

    • 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
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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