How Cost-Effective is a Mixed Policy Targeting the Management of Three Agricultural N-pollutants?

This paper assesses the cost-effectiveness of a mixed policy in attempts to reduce the presence of three nitrogen pollutants: NO ₃, N ₂O, and NH ₃. The policy under study combines a tax on nitrogen input and incentives promoting perennial crops assumed to require low input. We show that the mixed policy improves the cost-effectiveness of regulation with regard to nitrates, whereas no improvement occurs, except for a very low level of subsidy in some cases, for gas pollutants. A quantitative analysis provides an assessment of impacts in terms of land use, farmers’ income, and nitrogen losses throughout France and at river-basin scale.     

Evaluating the Efficiency of a Uniform N-Input Tax under Different Policy Scenarios at Different Scales

Nitrate pollution from agriculture is an important environmental externality, caused by the excessive use of fertilizers. The internalization of this problem, via a tax on mineral nitrogen, could lead to a second best solution, reducing nitrate emissions. Several authors suggest that a reduction in agricultural support could produce similar results. In this paper, we examine the effects of different levels of a uniformly implemented nitrogen tax in France under two policy scenarios, corresponding to post Agenda 2000 and 2003 Luxembourg reforms of European Union’s Common Agricultural Policy, in order to reveal the synergies and conflicts between the tax and the policy scenarios in terms of nitrate emissions abatement. The analysis is performed at different geographical scales, from the national to the regional and is based on a bioeconomic approach that involves the coupling of the economic model AROPAj with the crop model STICS. Results show that the efficiency of the N-tax varies according to the geographical scale of the analysis and the type of farming. Furthermore, we prove that a uniform implementation may lead to perverse effects that should always be taken into account when introducing second-best instruments.     

Increasing food production and mitigating agricultural greenhouse gas emissions in the European Union: impacts of carbon pricing and calorie production targeting

Environmental Economics and Policy Studies - This study focuses on the links between food production and greenhouse gas emissions in the European Union. The analysis relies on two sets of...     

Climate change impacts on European agriculture revisited: adding the economic dimension of grasslands

Forage and more widely grassland systems are difficult to analyze in economic terms because a large proportion of what is produced is not marketed. Economic misestimation of these farm products may dramatically alter projected climate change impacts. This study estimates the economic value of grass and assesses the impact of climatic variations on grassland–livestock systems by taking various environmental and climatic factors into account. Accordingly, grass yield responses to nitrogen inputs (N-yield functions) have been simulated using the grassland biogeochemical PaSim model and then fed into the economic farm-type supply AROPAj model. We developed a computational method to estimate shadow prices of grass production, allowing us to better estimate the effects of climatic variability on grassland and crop systems. This approach has been used on a European scale under two Intergovernmental Panel on Climate Change climate scenarios (AR4 A2 and B1). Results show a significant change in land use over time. Accordingly, due to decreases in feed expenses, farmers may increase livestock, thereby increasing overall greenhouse gas emissions for all scenarios considered. As part of autonomous adaptation by farming systems, N-yield functions extending to pastures and fodders allow us to improve the model and to refine results when marketed and non-marketed crops are considered in a balanced way.