Abatement Cost Heterogeneity and its Impact on Tradable Nitrogen Discharge Permits
Nitrogen discharge into the Waikato River has been identified as the primary source of potential water quality degradation. Rising nitrogen levels in water are attributed to non point source pollution from agricultural activities. Pastoral farming is the predominant agricultural land use in the catchment. Increased nitrogen fertilizer use and higher stocking rates have the potential to increase the nitrogen loading into water. There is a range of best management practices and policies proposed to reduce nitrogen discharge from farming systems. Water quality trading is a policy tool that could improve the cost effectiveness of achieving environmental goals. Economic theory suggests that tradable pollution permit systems encourage polluters to reallocate pollution burdens to take advantage of any differences in marginal abatement costs. This paper develops an analytical frame work to derive nitrogen abatement costs for farms in a Waikato river sub-catchment. Policies and practices are evaluated using a bio-economic model of a typical pastoral farm in the Waikato river sub-catchment. Implications of pollution trading at the farm level are examined using programming simulation models.
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.nzares.org.nz/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stavins, Robert, 2004.
Working Paper Series
rwp04-051, Harvard University, John F. Kennedy School of Government.
- Y. Farzin & Jonathan Kaplan, 2004.
"Nonpoint Source Pollution Control under Incomplete and Costly Information,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 28(4), pages 489-506, August.
- Y.H. Farzin & J.D. Kaplan, 1999. "Nonpoint Source Pollution Control Under Incomplete and Costly Information," Working Papers 1999.32, Fondazione Eni Enrico Mattei.
- Alfons Weersink & Scott Jeffrey & David Pannell, 2002. "Farm-Level Modeling for Bigger Issues," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(1), pages 123-140.
- Carpentier, Chantal Line & Bosch, Darrell J. & Batie, Sandra S., 1998. "Using Spatial Information To Reduce Costs Of Controlling Agricultural Nonpoint Source Pollution," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(1), April.
- Bennett, Jeffrey W., 2005.
"Australasian environmental economics: contributions, conflicts and ‘cop-outs’,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 49(3), September.
- Jeff Bennett, 2005. "Australasian environmental economics: contributions, conflicts and 'cop-outs' ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(3), pages 243-261, 09.
- Ribaudo, Marc O. & Heimlich, Ralph & Claassen, Roger & Peters, Mark, 2001. "Least-cost management of nonpoint source pollution: source reduction versus interception strategies for controlling nitrogen loss in the Mississippi Basin," Ecological Economics, Elsevier, vol. 37(2), pages 183-197, May.
- McCall, D. G. & Bishop-Hurley, G. J., 2003. "A pasture growth model for use in a whole-farm dairy production model," Agricultural Systems, Elsevier, vol. 76(3), pages 1183-1205, June.
- Lant, Christopher L. & Kraft, Steven E. & Beaulieu, Jeffrey & Bennett, David & Loftus, Timothy & Nicklow, John, 2005. "Using GIS-based ecological-economic modeling to evaluate policies affecting agricultural watersheds," Ecological Economics, Elsevier, vol. 55(4), pages 467-484, December.
- Taylor, Michael L. & Adams, Richard M. & Miller, Stanley F., 1992. "Farm-Level Response To Agricultural Effluent Control Strategies: The Case Of The Willamette Valley," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(01), July.
- Atkinson, Scott E. & Morton, Brian J., 2004. "Determining the cost-effective size of an emission trading region for achieving an ambient standard," Resource and Energy Economics, Elsevier, vol. 26(3), pages 295-315, September.
- Stavins Robert N., 1995. "Transaction Costs and Tradeable Permits," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 133-148, September.
- Brady, Mark, 2003. "The relative cost-efficiency of arable nitrogen management in Sweden," Ecological Economics, Elsevier, vol. 47(1), pages 53-70, November.
- Kampas, Athanasios & White, Ben, 2003. "Selecting permit allocation rules for agricultural pollution control: a bargaining solution," Ecological Economics, Elsevier, vol. 47(2-3), pages 135-147, December.
When requesting a correction, please mention this item's handle: RePEc:ags:nzar06:31972. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.