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Site-Specific Simulation of Nutrient Control Policies: Integrating Economic and Water Quality Effects

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  • Burkhart, Christopher S.
  • Jha, Manoj K.

Abstract

A watershed-based modeling system is developed to assess alternative nutrient abatement policies, including fertilizer taxes, application caps, and uniform reductions. A microeconometric model of nutrient use is estimated using farm-level data, prices, and spatially detailed soil and land characteristics. Results are interfaced with a physical watershed model to predict water quality changes. Simulations demonstrate differences in water quality effects across policies. For nitrate loads at the watershed outlet, an application cap provides slightly superior performance for small reductions, but a tax is more efficient under larger reductions. Phosphorus reductions at the subwatershed level vary but provide information about policy tradeoffs.

Suggested Citation

  • Burkhart, Christopher S. & Jha, Manoj K., 2012. "Site-Specific Simulation of Nutrient Control Policies: Integrating Economic and Water Quality Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), pages 1-14, April.
    • Handle: RePEc:ags:jlaare:122307
    DOI: 10.22004/ag.econ.122307
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    References listed on IDEAS

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    Cited by:

    1. Paudel, Jayash & Crago, Christine L., 2018. "Fertilizer Use and Water Quality in the United States," 2018 Annual Meeting, August 5-7, Washington, D.C. 274312, Agricultural and Applied Economics Association.
    2. Jayash Paudel & Christine L. Crago, 2021. "Environmental Externalities from Agriculture: Evidence from Water Quality in the United States," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 185-210, January.

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