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How cost-effective is a mixed policy targeting the management of three pollutants from N-fertilizers

Author

Listed:
  • Cyril Bourgeois
  • Nosra Ben-Fradj
  • Mélissa Clodic
  • Pierre-Alain Jayet

Abstract

This paper assesses the cost-effectiveness of a mixed policy in attempts to curb three nitrogen pollutants: NO3, N20 and NH3. The policy under study combines an N-tax on nitrogen input and incentives promoting perennial crops assumed to require low input. We show that opting for a perennial crop subsidy, in addition to an N-tax, significantly increases tax effectiveness in the case of N03. A quantitative analysis provides an assessment of impacts in terms of land-use, farmers' income and N losses throughout France and at the river-basin scale.

Suggested Citation

  • Cyril Bourgeois & Nosra Ben-Fradj & Mélissa Clodic & Pierre-Alain Jayet, 2011. "How cost-effective is a mixed policy targeting the management of three pollutants from N-fertilizers," Working Papers 2011/03, INRA, Economie Publique.
  • Handle: RePEc:apu:wpaper:2011/03
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    File URL: https://www6.versailles-grignon.inra.fr/economie_publique/Media/fichiers/Working-Papers/Working-Papers-2011/2011_03
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    References listed on IDEAS

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    2. Ashar Aftab & Nick Hanley & Athanasios Kampas, 2007. "Co-ordinated environmental regulation: controlling non-point nitrate pollution while maintaining river flows," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(4), pages 573-593, December.
    3. Stéphane Cara & Martin Houzé & Pierre-Alain Jayet, 2005. "Methane and Nitrous Oxide Emissions from Agriculture in the EU: A Spatial Assessment of Sources and Abatement Costs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(4), pages 551-583, December.
    4. Aftab, Ashar & Hanley, Nick & Baiocchi, Giovanni, 2010. "Integrated regulation of nonpoint pollution: Combining managerial controls and economic instruments under multiple environmental targets," Ecological Economics, Elsevier, vol. 70(1), pages 24-33, November.
    5. Lankoski, Jussi & Ollikainen, Markku, 2011. "Biofuel policies and the environment: Do climate benefits warrant increased production from biofuel feedstocks?," Ecological Economics, Elsevier, vol. 70(4), pages 676-687, February.
    6. Jussi Lankoski & Markku Ollikainen, 2008. "Bioenergy crop production and climate policies: a von Thunen model and the case of reed canary grass in Finland," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(4), pages 519-546, December.
    7. Shortle, James S & Horan, Richard D, 2001. " The Economics of Nonprofit Pollution Control," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 255-289, July.
    8. Lacroix, Anne & Beaudoin, Nicolas & Makowski, David, 2005. "Agricultural water nonpoint pollution control under uncertainty and climate variability," Ecological Economics, Elsevier, vol. 53(1), pages 115-127, April.
    9. Renan-Ulrich Goetz & Hansjörg Schmid & Bernard Lehmann, 2006. "Determining the economic gains from regulation at the extensive and intensive margins," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(1), pages 1-30, March.
    10. Balana, Bedru Babulo & Vinten, Andy & Slee, Bill, 2011. "A review on cost-effectiveness analysis of agri-environmental measures related to the EU WFD: Key issues, methods, and applications," Ecological Economics, Elsevier, vol. 70(6), pages 1021-1031, April.
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    Citations

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    Cited by:

    1. Ben Fradj, Nosra & Jayet, Pierre-Alain, 2016. "Sensitivity of miscanthus supply: Application of Faustmann's rule in deterministic and stochastic cases," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235775, Agricultural and Applied Economics Association.
    2. Chakir, Raja & Lungarska, Anna, 2015. "Agricultural land rents in land use models: a spatial econometric analysis," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212641, European Association of Agricultural Economists.
    3. repec:kap:enreec:v:69:y:2018:i:1:d:10.1007_s10640-016-0064-9 is not listed on IDEAS
    4. Benjamin Dequiedt & Emmanuel Servonnat, 2016. "Risk as a limit or an opportunity to mitigate GHG emissions? The case of fertilisation in agriculture," Working Papers 1606, Chaire Economie du climat.

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