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Dynamically Optimal Phosphorus Management and Agricultural Water Protection

  • Iho, Antti
  • Laukkanen, Marita

This paper puts forward a model of the role of phosphorus in crop production, soil phosphorus dynamics and phosphorus loading that integrates the salient economic and ecological features of agricultural phosphorus management. The model accounts for the links between phosphorus fertilization, crop yield, accumulation of soil phosphorus reserves, and phosphorus loading. It can be used to guide precision phosphorus management and erosion control as means to mitigate agricultural loading. Using a parameterization for cereal production in southern Finland, the model is solved numerically to analyze the intertemporally optimal combination of fertilization and erosion control and the associated soil phosphorus development. The optimal fertilizer application rate changes markedly over time in response to changes in the soil phosphorus level. When, for instance, soil phosphorus is initially above the socially optimal steady state level, annually matching phosphorus application to the prevailing soil phosphorus stock produces significantly higher social welfare than using a fixed fertilizer application rate. Erosion control was found to increase welfare only on land that is highly susceptible to erosion.

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File URL: http://purl.umn.edu/54285
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Paper provided by MTT Agrifood Research Finland in its series Discussion Papers with number 54285.

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Date of creation: Oct 2009
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Handle: RePEc:ags:mttfdp:54285
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  1. Myyra, Sami & Pietola, Kyosti, 2006. "Exploring long-term land improvements under land tenure insecurity," 2006 Conference, August 24-25, 2006, Nelson, New Zealand 31954, New Zealand Agricultural and Resource Economics Society.
  2. Jussi Lankoski & Markku Ollikainen & Pekka Uusitalo, 2006. "No-till technology: benefits to farmers and the environment? Theoretical analysis and application to Finnish agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(2), pages 193-221, June.
  3. Lichtenberg, Erik, 2002. "Agriculture and the environment," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 23, pages 1249-1313 Elsevier.
  4. Koikkalainen, Kauko & Laukkanen, Marita & Helin, Janne, 2006. "Abatement costs for agricultural nitrogen and phosphorus loads: a case study of South-Western Finland," Discussion Papers 11867, MTT Agrifood Research Finland.
  5. Turtola, E. & Paajanen, A., 1995. "Influence of improved subsurface drainage on phosphorus losses and nitrogen leaching from a heavy clay soil," Agricultural Water Management, Elsevier, vol. 28(4), pages 295-310, December.
  6. Khanna, Madhu & Zilberman, David, 1997. "Incentives, precision technology and environmental protection," Ecological Economics, Elsevier, vol. 23(1), pages 25-43, October.
  7. Goetz, Renan-Ulrich & Keusch, Alois, 2005. "Dynamic efficiency of soil erosion and phosphor reduction policies combining economic and biophysical models," Ecological Economics, Elsevier, vol. 52(2), pages 201-218, January.
  8. Schnitkey, Gary D. & Miranda, Mario J., 1993. "The Impact Of Pollution Controls On Livestock-Crop Producers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(01), July.
  9. Gren, Ing-Marie & Folmer, Henk, 2003. "Cooperation with respect to cleaning of an international water body with stochastic environmental damage: the case of the Baltic Sea," Ecological Economics, Elsevier, vol. 47(1), pages 33-42, November.
  10. Goetz, Renan U. & Zilberman, David, 2000. "The dynamics of spatial pollution: The case of phosphorus runoff from agricultural land," Journal of Economic Dynamics and Control, Elsevier, vol. 24(1), pages 143-163, January.
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