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Abatement costs for agricultural nitrogen and phosphorus loads: a case study of South-Western Finland

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  • Koikkalainen, Kauko
  • Laukkanen, Marita
  • Helin, Janne

Abstract

Designing efficient agri-environmental policies for agricultural nutrient load reductions calls for information on the costs of emission reduction measures. This study develops an empirical framework for estimating abatement costs for nutrient loading from agricultural land. Nitrogen abatement costs and the phosphorus load reductions associated with nitrogen abatement are derived for crop farming in southern Finland. The model is used to evaluate the effect of the Common Agricultural Policy reform currently underway on nutrient abatement costs. Results indicate that an efficiently designed policy aimed at a 50 % reduction in agricultural nitrogen load would cost $25 to $28 million, or $1995 to $2197 per farm.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:mttfdp:11867
    DOI: 10.22004/ag.econ.11867
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    1. Berntsen, J. & Petersen, B. M. & Jacobsen, B. H. & Olesen, J. E. & Hutchings, N. J., 2003. "Evaluating nitrogen taxation scenarios using the dynamic whole farm simulation model FASSET," Agricultural Systems, Elsevier, vol. 76(3), pages 817-839, June.
    2. Johansson, Robert C. & Gowda, Prasanna H. & Mulla, David J. & Dalzell, Brent J., 2004. "Metamodelling phosphorus best management practices for policy use: a frontier approach," Agricultural Economics, Blackwell, vol. 30(1), pages 63-74, January.
    3. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, January.
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    Cited by:

    1. Kuosmanen, Timo & Laukkanen, Marita, 2009. "(In)Efficient Management of Interacting Environmental Bads," Discussion Papers 54287, MTT Agrifood Research Finland.
    2. Sihvonen, M. & Valkama, E. & Hyytiainen, K., 2018. "Optimal Abatement of Nitrogen and Phosphorus Loading from Spring Crop Cultivation," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277119, International Association of Agricultural Economists.
    3. Doole, Graeme J., 2012. "Cost-effective policies for improving water quality by reducing nitrate emissions from diverse dairy farms: An abatement–cost perspective," Agricultural Water Management, Elsevier, vol. 104(C), pages 10-20.
    4. Lötjönen, Sanna & Ollikainen, Markku & Kotamäki, Niina & Huttunen, Markus & Huttunen, Inese, 2021. "Nutrient load compensation as a means of maintaining the good ecological status of surface waters," Ecological Economics, Elsevier, vol. 188(C).
    5. Marita Laukkanen & NAUGES Céline, 2009. "Environmental and production cost impacts of no-till: estimates from observed behavior," LERNA Working Papers 09.28.304, LERNA, University of Toulouse.
    6. Helin, Janne, 2008. "Environmental protection of agriculture -clash of policies?," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6468, European Association of Agricultural Economists.
    7. Marita Laukkanen & Anni Huhtala, 2008. "Optimal management of a eutrophied coastal ecosystem: balancing agricultural and municipal abatement measures," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 39(2), pages 139-159, February.
    8. Iho, Antti & Laukkanen, Marita, 2012. "Precision phosphorus management and agricultural phosphorus loading," Ecological Economics, Elsevier, vol. 77(C), pages 91-102.
    9. Marita Laukkanen & Céline Nauges, 2014. "Evaluating Greening Farm Policies: A Structural Model for Assessing Agri-environmental Subsidies," Land Economics, University of Wisconsin Press, vol. 90(3), pages 458-481.
    10. Iho, Antti & Laukkanen, Marita, 2009. "Dynamically Optimal Phosphorus Management and Agricultural Water Protection," Discussion Papers 54285, MTT Agrifood Research Finland.
    11. Qiuzhen Chen & Stefan Bäckman & John Sumelius, 2016. "Nitrogen use and the integration of environmental concerns into production," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 12(1), pages 53-76.
    12. Line Hansen & Lars Hansen, 2014. "Can Non-point Phosphorus Emissions from Agriculture be Regulated Efficiently Using Input-Output Taxes?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(1), pages 109-125, May.
    13. Helin, Janne & Tattari, Sirkka, 2010. "How much can be gained by optimizing nutrient abetment spatially – Cost – efficiency comparison of non – point arable loads from different Finnish watersheds," 120th Seminar, September 2-4, 2010, Chania, Crete 109381, European Association of Agricultural Economists.
    14. Hyytiainen, Kari & Ahtiainen, Heini & Heikkila, Jaakko & Helin, Janne & Huhtala, Anni & Iho, Antti & Koikkalainen, Kauko & Miettinen, Antti & Pouta, Eija & Vesterinen, Janne, 2009. "An integrated simulation model to evaluate national policies for the abatement of agricultural nutrients in the Baltic Sea," Discussion Papers 49896, MTT Agrifood Research Finland.
    15. Timo Kuosmanen & Marita Laukkanen, 2011. "(In)Efficient Environmental Policy with Interacting Pollutants," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(4), pages 629-649, April.
    16. 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.
    17. Janne Antero Helin, 2014. "Reducing nutrient loads from dairy farms: a bioeconomic model with endogenous feeding and land use," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 167-184, March.
    18. Marita Laukkanen & Céline Nauges, 2011. "Environmental and Production Cost Impacts of No-till in Finland: Estimates from Observed Behavior," Land Economics, University of Wisconsin Press, vol. 87(3), pages 508-527.
    19. Kari Hyytiäinen & Anni Huhtala, 2014. "Combating eutrophication in coastal areas at risk for oil spills," Annals of Operations Research, Springer, vol. 219(1), pages 101-121, August.
    20. Helin, Janne, 2009. "Does geography matter in nutrient abatement? Bioeconomic model of heteregoneus farm nutrient loads," 2009 Conference, August 16-22, 2009, Beijing, China 51693, International Association of Agricultural Economists.
    21. Vesterinen, Janne & Pouta, Eija, 2008. "Water recreation benefits from reduced eutrophication in Finnish surface waters," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43848, European Association of Agricultural Economists.

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