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Environmental and Production Cost Impacts of No-till in Finland: Estimates from Observed Behavior

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  • Marita Laukkanen
  • Céline Nauges

Abstract

No-till has been promoted as a cultivation method that reduces both production costs and the environmental impacts of farming relative to conventional tillage. Using farm-level data from Finland, we show that no-till has no statistically significant effect on total variable costs but that it increases the use of plant protection products and fertilizers, and decreases the use of labor. An environmental impact simulation combining the results on input use with a nutrient and herbicide runoff model predicts that no-till produces environmental benefits on highly erodible land but may be even detrimental to the environment in average conditions.

Suggested Citation

  • 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.
    • Handle: RePEc:uwp:landec:v:87:y:2011:iii:1:p:508-527
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    References listed on IDEAS

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    1. Lyubov Kurkalova & Catherine Kling & Jinhua Zhao, 2006. "Green Subsidies in Agriculture: Estimating the Adoption Costs of Conservation Tillage from Observed Behavior," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(2), pages 247-267, June.
    2. Brian W. Gould & William E. Saupe & Richard M. Klemme, 1989. "Conservation Tillage: The Role of Farm and Operator Characteristics and the Perception of Soil Erosion," Land Economics, University of Wisconsin Press, vol. 65(2), pages 167-185.
    3. Kelly A. Davey & W. Hartley Furtan, 2008. "Factors That Affect the Adoption Decision of Conservation Tillage in the Prairie Region of Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(3), pages 257-275, September.
    4. Miranowski, John & Shortle, J., 1986. "Effects of Risk Perceptions and Other Characteristics of Farmers and Farm Operations on the Adoption of Conservation Tillage Practices," Staff General Research Papers Archive 10703, Iowa State University, Department of Economics.
    5. Caves, Douglas W & Christensen, Laurits R & Swanson, Joseph A, 1981. "Productivity Growth, Scale Economies, and Capacity Utilization in U.S. Railroads, 1955-74," American Economic Review, American Economic Association, vol. 71(5), pages 994-1002, December.
    6. Jussi Lankoski & Markku Ollikainen & Pekka Uusitalo, 2006. "No-till technology: benefits to farmers and the environment? Theoretical analysis and application to Finnish agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(2), pages 193-221, June.
    7. 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.
    8. Namatié Traoré & Réjean Landry & Nabil Amara, 1998. "On-Farm Adoption of Conservation Practices: The Role of Farm and Farmer Characteristics, Perceptions, and Health Hazards," Land Economics, University of Wisconsin Press, vol. 74(1), pages 114-127.
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    Cited by:

    1. Tessema, Yohannis Mulu & Asafu-Adjaye, John & Shiferaw, Bekele, 2018. "The impact of conservation tillage on maize yield and input demand: the case of smallholder farmers in north-west Ethiopia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(4), October.
    2. Bostian, AJ & Bostian, Moriah & Laukkanen, Marita & Simola, Antti Mikko, 2017. "Assessing The Impact Of Agri-Environmental Management Practices On Farm Productivity When Adoption Is Endogenous," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261154, European Association of Agricultural Economists.
    3. 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.
    4. Bostian, Moriah B. & Dupraz, Pierre & Minviel, Jean Joseph, 2015. "Production effects of wetland conservation: evidence from France," Working Papers 210465, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    5. Iho, Antti & Laukkanen, Marita, 2012. "Precision phosphorus management and agricultural phosphorus loading," Ecological Economics, Elsevier, vol. 77(C), pages 91-102.

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    More about this item

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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