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Abatement of agricultural pollution and economic incentives: The case of intensive livestock farming in France

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  • D. Vermersch
  • F. Bonnieux
  • P. Rainelli

Abstract

Amongst possible economic incentives to encourage reduced nitrate contamination of water, this paper emphasizes a nitrogen tax as a possible solution. This finding is based on models estimated from panel data for 100 intensive livestock farms. For each farm a threshold is established (nitrogen units which can be spread per hectare without damage) above which there is an excess of nitrogen. The 100 farms can consequently be classified into two subsamples. The demand for nitrogen is derived for each sub-sample using the dual approach. Both categories are pooled together and a tobit model is estimated. This is used to derive total nitogen demand if all farms were under the threshold. A mineral nitrogen tax would lead to a reduced nitrate concentration in water supplies, because of a more efficient use of organic nitrogen together with a reduction in the use of mineral nitrogen in crop production. Copyright Kluwer Academic Publishers 1993

Suggested Citation

  • D. Vermersch & F. Bonnieux & P. Rainelli, 1993. "Abatement of agricultural pollution and economic incentives: The case of intensive livestock farming in France," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 3(3), pages 285-296, June.
    • Handle: RePEc:kap:enreec:v:3:y:1993:i:3:p:285-296
    DOI: 10.1007/BF00313163
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    References listed on IDEAS

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    1. Wise, Sherry & Johnson, Stanley R. & Just, Richard E. & Bockstael, Nancy, 1991. "Commodity and Resource Policies in Agricultural Systems," Staff General Research Papers Archive 396, Iowa State University, Department of Economics.
    2. Johnson, Stanley R. & Atwood, J. D. & Thompson, L., 1991. "Tradeoffs Between Agricultural and Chemical Policies," Staff General Research Papers Archive 365, Iowa State University, Department of Economics.
    3. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, October.
    4. Hanley, Nick, 1990. "The Economics of Nitrate Pollution," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 17(2), pages 129-151.
    5. Dominique Vermersch, 1989. "L'allocation du travail dans les exploitations céréalières," Économie et Prévision, Programme National Persée, vol. 91(5), pages 57-65.
    6. Bonnieux, F & Rainelli, P, 1988. "Agricultural Policy and Environment in Developed Countries," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 15(2/3), pages 263-281.
    7. Guyomard, Herve & Vermersch, Dominique, 1989. "Derivation of long-run factor demands from short-run responses," Agricultural Economics, Blackwell, vol. 3(3), pages 213-230, October.
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    Cited by:

    1. Vatn, Arild & Bakken, Lars & Bleken, Marina A. & Baadshaug, Ole Hans & Fykse, Haldor & Haugen, Lars E. & Lundekvam, Helge & Morken, John & Romstad, Eirik & Rorstad, Per Kristian & Skjelvag, Arne O. & , 2006. "A methodology for integrated economic and environmental analysis of pollution from agriculture," Agricultural Systems, Elsevier, vol. 88(2-3), pages 270-293, June.
    2. Polman, Nico B. P. & Thijssen, Geert J., 2002. "Combining results of different models: the case of a levy on the Dutch nitrogen surplus," Agricultural Economics, Blackwell, vol. 27(1), pages 41-49, May.

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