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Does Scale Matter? Cost Effectiveness of Agricultural Nutrient Abatement When Target Level Varies

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  • Iho, Antti

Abstract

Agricultural production is facing high requirements on nutrient runoff reduction. Furthermore, the reductions should by done efficiently. For instance, the European Water Framework Directive calls for cost-effectiveness from schemes of measures to fulfill the target of good water quality in European river basins. In this paper we analyse the implications of target level variation on efficiency properties of agricultural phosphorus abatement. We analyse the robustness of cost-effectiveness as the scheme of measures is adopted from another, identical river basin with different target level on total phosphorus abatement. We find that even between homogeneous regions the cost-effective scheme of measures is unique for all target levels of reduction, and that the costs of adoting cost-effective allocations out of scale are high.

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  • Iho, Antti, 2005. "Does Scale Matter? Cost Effectiveness of Agricultural Nutrient Abatement When Target Level Varies," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24701, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24701
    DOI: 10.22004/ag.econ.24701
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    References listed on IDEAS

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    Cited by:

    1. Nainggolan, Doan & Hasler, Berit & Andersen, Hans E. & Gyldenkærne, Steen & Termansen, Mette, 2018. "Water Quality Management and Climate Change Mitigation: Cost-effectiveness of Joint Implementation in the Baltic Sea Region," Ecological Economics, Elsevier, vol. 144(C), pages 12-26.
    2. George HALKOS & Georgia GALANI, 2014. "Cost Effectiveness Analysis in Reducing Nutrient Loading in Baltic and Black Seas A Review," Journal of Advanced Research in Management, ASERS Publishing, vol. 5(1), pages 28-51.

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