IDEAS home Printed from https://ideas.repec.org/a/ags/ijameu/262342.html
   My bibliography  Save this article

Reducing nitrogen applications on Irish dairy farms: effectiveness and efficiency of different strategies

Author

Listed:
  • Lally, Breda
  • van Rensburg, Tom M.

Abstract

In the EU, nitrate pollution from agriculture is regulated by a command and control approach ‐ the Nitrates Directive, with which all member states are expected to comply. Nitrogen restrictions impose production constraints on some farms and can result in reductions in farm income. This paper employs positive mathematical programming (PMP) to estimate the impact of nitrogen restrictions on farm incomes among dairy farms in the Republic of Ireland. The paper also investigates if compliance with the Nitrates Directive in terms of nitrogen application rates would be achieved more effectively by regulation than by taxation. Results show that restrictions on nitrogen use under the Nitrates Directive Action Plan imposes a cost on intensive dairy farms with reductions in income ranging from 0.1% cent to 36%. Findings also show that the limits on applications of nitrogenous material on dairy farms in Ireland would be achieved more effectively and more equitably by regulation than by a uniform tax on nitrogen fertilizer. In some cases a tax on inorganic nitrogen is found to be an ineffective way of achieving the levels of organic nitrogen permitted under the Nitrates Directive.

Suggested Citation

  • Lally, Breda & van Rensburg, Tom M., 2014. "Reducing nitrogen applications on Irish dairy farms: effectiveness and efficiency of different strategies," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 4(01), October.
    • Handle: RePEc:ags:ijameu:262342
    DOI: 10.22004/ag.econ.262342
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/262342/files/s6.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/262342/files/s6.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.262342?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jeroen Buysse & Bruno Fernagut & Olivier Harmignie & Bruno Henry de Frahan & Ludwig Lauwers & Philippe Polomé & Guido Van Huylenbroeck & Jef Van Meensel, 2007. "Farm-based modelling of the EU sugar reform: impact on Belgian sugar beet suppliers," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 34(1), pages 21-52, March.
    2. Buckley, Cathal, 2012. "Implementation of the EU Nitrates Directive in the Republic of Ireland — A view from the farm," Ecological Economics, Elsevier, vol. 78(C), pages 29-36.
    3. Semaan, Josephine & Flichman, Guillermo & Scardigno, Alessandra & Steduto, Pasquale, 2007. "Analysis of nitrate pollution control policies in the irrigated agriculture of Apulia Region (Southern Italy): A bio-economic modelling approach," Agricultural Systems, Elsevier, vol. 94(2), pages 357-367, May.
    4. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    5. Heckelei, Thomas & Britz, Wolfgang, 2005. "Models Based on Positive Mathematical Programming: State of the Art and Further Extensions," 89th Seminar, February 2-5, 2005, Parma, Italy 234607, European Association of Agricultural Economists.
    6. Fragoso, R. & Marques, C. & Lucas, M.R. & Martins, M.B. & Jorge, R., 2011. "The economic effects of common agricultural policy on Mediterranean montado/dehesa ecosystem," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 311-327, March.
    7. Lally, Breda & Riordan, Brendan & van Rensburg, Tom M., 2007. "Controlling Agricultural Emissions of Nitrates: Regulations versus Taxes," 81st Annual Conference, April 2-4, 2007, Reading University, UK 7981, Agricultural Economics Society.
    8. Higgins, James, 1986. "Input Demand and Output Supply on Irish Farms--A Micro-economic Approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 13(4), pages 477-493.
    9. 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.
    10. JunJie Wu & Bruce Babcock, 2001. "Spatial Heterogeneity and the Choice of Instruments to Control Nonpoint Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 18(2), pages 173-192, February.
    11. Berentsen, P. B. M. & Giesen, G. W. J., 1995. "An environmental-economic model at farm level to analyse institutional and technical change in dairy farming," Agricultural Systems, Elsevier, vol. 49(2), pages 153-175.
    12. Carlo Fezzi & Dan Rigby & Ian J. Bateman & David Hadley & Paulette Posen, 2008. "Estimating the range of economic impacts on farms of nutrient leaching reduction policies," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 197-205, September.
    13. Gloria E. Helfand & Brett W. House, 1995. "Regulating Nonpoint Source Pollution Under Heterogeneous Conditions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 1024-1032.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Buckley, Cathal & Wall, David P. & Moran, Brian & O'Neill, Stephen & Murphy, Paul N.C., 2016. "Phosphorus management on Irish dairy farms post controls introduced under the EU Nitrates Directive," Agricultural Systems, Elsevier, vol. 142(C), pages 1-8.
    2. Buckley, Cathal & Wall, David P. & Moran, Brian & O'Neill, Stephen & Murphy, Paul N.C., 2015. "Post EU Nitrates Directive implementation: an examination of the sustainable use of phosphorus in milk production," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204207, Agricultural Economics Society.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Petsakos, Athanasios & Jayet, Pierre-Alain, 2010. "Evaluating the efficiency of a N-input tax under different policy scenarios at different scales," 120th Seminar, September 2-4, 2010, Chania, Crete 109397, European Association of Agricultural Economists.
    2. Viaggi, Davide & Raggi, Meri & Gomez y Paloma, Sergio, 2011. "Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 127-145, January.
    3. Kamel Elouhichi & Pascal Tillie & Aymeric Ricome & Sergio Gomez-Y-Paloma, 2020. "Modelling Farm-household Livelihoods in Developing Economies: Insights from three country case studies using LSMS-ISA data," JRC Research Reports JRC118822, Joint Research Centre.
    4. Takahiro Nakashima & Shoko Ishikawa, 2022. "Exploring Farmers’ Expectation toward Farm-Gate Price of Rice in Japan by Positive Mathematical Programming," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    5. Graveline, N. & Loubier, S. & Gleyses, G. & Rinaudo, J.-D., 2012. "Impact of farming on water resources: Assessing uncertainty with Monte Carlo simulations in a global change context," Agricultural Systems, Elsevier, vol. 108(C), pages 29-41.
    6. Arfini, Filippo & Donati, Michele & Paris, Quirino, 2008. "Innovation in Estimation of Revenue and Cost Functions in PMP Using FADN Information at Regional Level," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44008, European Association of Agricultural Economists.
    7. Kamel Louhichi & Pascal Tillie & Aymeric Ricome & Sergio Gomez y Paloma, 2020. "Modelling Farm-household Livelihoods in Developing Economies Insights from three country case studies using LSMS-ISA data [Modélisation des moyens de subsistance des ménages agricoles dans les écon," Post-Print hal-02544905, HAL.
    8. Louhichi, Kamel & Gomez y Paloma, Sergio, 2014. "A farm household model for agri-food policy analysis in developing countries: Application to smallholder farmers in Sierra Leone," Food Policy, Elsevier, vol. 45(C), pages 1-13.
    9. Janssen, Sander J.C. & van Ittersum, Martin K., 2007. "Assessing farmer behaviour as affected by policy and technological innovations: bio-economic farm models," Reports 9293, Wageningen University, SEAMLESS: System for Environmental and Agricultural Modelling; Linking European Science and Society.
    10. Heckelei, Thomas & Britz, Wolfgang & Zhang, Yinan, 2012. "Positive Mathematical Programming Approaches – Recent Developments in Literature and Applied Modelling," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 1(01), pages 1-16, April.
    11. CARPENTIER, Alain & GOHIN, Alexandre & SCKOKAI, Paolo & THOMAS, Alban, 2015. "Economic modelling of agricultural production: past advances and new challenges," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 96(01), March.
    12. Gómez-Limón, José A. & Gutiérrez-Martín, Carlos & Riesgo, Laura, 2016. "Modeling at farm level: Positive Multi-Attribute Utility Programming," Omega, Elsevier, vol. 65(C), pages 17-27.
    13. Janssen, Sander & van Ittersum, Martin K., 2007. "Assessing farm innovations and responses to policies: A review of bio-economic farm models," Agricultural Systems, Elsevier, vol. 94(3), pages 622-636, June.
    14. Graeme J. Doole, 2010. "Evaluating Input Standards for Non‐Point Pollution Control under Firm Heterogeneity," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(3), pages 680-696, September.
    15. Brady, Mark, 2003. "The relative cost-efficiency of arable nitrogen management in Sweden," Ecological Economics, Elsevier, vol. 47(1), pages 53-70, November.
    16. Zhou, Wei, 2015. "Three essays on modeling biofuel feedstock supply," ISU General Staff Papers 201501010800005728, Iowa State University, Department of Economics.
    17. Syed Shurid Khan & Shawn Arita & Richard Howitt & PingSun Leung, 2022. "Evaluating change in property tax regime on noncommercial food production using a modified positive mathematical programming model," SN Business & Economics, Springer, vol. 2(9), pages 1-20, September.
    18. Doole, Graeme J. & Marsh, Dan K., 2014. "Use of positive mathematical programming invalidates the application of the NZFARM model: Response to Daigneault et al. (2014)," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(2), April.
    19. Kamel Louhichi & Hugo Valin, 2012. "Impact of EU biofuel policies on the French arable sector: A micro-level analysis using global market and farm-based supply models," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 93(3), pages 233-272.
    20. Fragoso, R. & Marques, C. & Lucas, M.R. & Martins, M.B. & Jorge, R., 2011. "The economic effects of common agricultural policy on Mediterranean montado/dehesa ecosystem," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 311-327, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ijameu:262342. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifmaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.