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Controlling Dairy Nitrogen Emissions: A Dynamic Analysis of Herd Adjustment, Ground Water Discharges, and Air Emissions

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  • Baerenklau, Kenneth A.
  • Nergis, Nermin

Abstract

A micro-dynamic model of a livestock-crop operation is calibrated with data from a representative dairy in California's Central Valley and is used to predict the effects of regulations designed to reduce nitrogen emissions. Policy simulations clarify the importance of dynamic elements and demonstrate three main results: (1) dairies are unresponsive to pollution charges unless they are relatively large and financially burdensome for farmers; (2) regulations aimed at controlling only nitrate leaching will cause significant increases in ammonia emissions; and (3) mitigating both nitrogen problems with emissions taxes involves substantial reductions in both herd size and farm profit.

Suggested Citation

  • Baerenklau, Kenneth A. & Nergis, Nermin, 2006. "Controlling Dairy Nitrogen Emissions: A Dynamic Analysis of Herd Adjustment, Ground Water Discharges, and Air Emissions," 2006 Annual meeting, July 23-26, Long Beach, CA 21448, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21448
    DOI: 10.22004/ag.econ.21448
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