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Linking Farmers' Nutrient Management Choices with Downstream Environmental Quality

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  • Zhang, Wendong

Abstract

Using field-level data on cropping patterns and a survey of 7,500 farmers in western Lake Erie basin, we estimate farmers’ heterogeneous derived demand for phosphorus fertilizer that vary by both farmer and field characteristics. We combine these results with a spatially-explicit hydrological model to quantify the impacts of a fertilizer tax on fertilizer application rates, total and dissolved reactive phosphorus loadings. Finally, an efficiency frontier is constructed to quantify the trade-offs among predicted changes in agricultural profits, fertilizer application rates, and phosphorus loadings under a uniform fertilizer tax versus one that is targeted either spatially or based on farmer characteristics.

Suggested Citation

  • Zhang, Wendong, 2014. "Linking Farmers' Nutrient Management Choices with Downstream Environmental Quality," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170594, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:170594
    DOI: 10.22004/ag.econ.170594
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    1. JunJie Wu & Richard M. Adams & Catherine L. Kling & Katsuya Tanaka, 2004. "From Microlevel Decisions to Landscape Changes: An Assessment of Agricultural Conservation Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 26-41.
    2. Lichtenberg, Erik, 2004. "Some Hard Truths About Agriculture and the Environment," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(1), pages 1-10, April.
    3. Norris, Patricia E. & Batie, Sandra S., 1987. "Virginia Farmers' Soil Conservation Decisions: An Application Of Tobit Analysis," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(1), pages 1-12, July.
    4. Norris, Patricia E. & Batie, Sandra S., 1987. "Virginia Farmers' Soil Conservation Decisions: An Application of Tobit Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 19(1), pages 79-90, July.
    5. Sohngen, Brent & Kim, Sei Jin & Sam, Abdoul & King, Kevin W., 2013. "The implications of environmental policy on nutrient outputs in agricultural watersheds," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151215, Agricultural and Applied Economics Association.
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    Keywords

    Agricultural and Food Policy; Environmental Economics and Policy; Land Economics/Use;
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