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How much can be gained by optimizing nutrient abetment spatially – Cost – efficiency comparison of non – point arable loads from different Finnish watersheds

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  • Helin, Janne
  • Tattari, Sirkka

Abstract

Targeting has become the buzz word in the national agri-environmental policy reform in Finland. It is generally accepted that more environmental benefits could be reaped by implementing environmental protection measures where they have the biggest positive impact. However, considering one of the main environmental problems in Finland resulting from agriculture, eutrophication, the identification of first-best policy or even the biggest contributors among the diffuse nutrient sources remains as a considerable challenge. The model developed in this study aims to demonstrate how the agricultural nutrient load potential can be calculated in a way which supports the identifying of cost-efficient abatement policies. We use metamodeling of dynamic nutrient load model (ICECREAM) to establish load parameters for non linear economic optimization to derive abatement cost functions for nutrient loads of 2 Finnish catchments. We calculate the difference in costs of the spatially optimal allocation of reduction measures and compare with the costs based on average non-targeted measures.

Suggested Citation

  • Helin, Janne & Tattari, Sirkka, 2010. "How much can be gained by optimizing nutrient abetment spatially – Cost – efficiency comparison of non – point arable loads from different Finnish watersheds," 120th Seminar, September 2-4, 2010, Chania, Crete 109381, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa120:109381
    DOI: 10.22004/ag.econ.109381
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    References listed on IDEAS

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    1. 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.
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    3. Johansson, Robert C. & Gowda, Prasanna H. & Mulla, David J. & Dalzell, Brent J., 2004. "Metamodelling phosphorus best management practices for policy use: a frontier approach," Agricultural Economics, Blackwell, vol. 30(1), pages 63-74, January.
    4. Wu, JunJie & Babcock, Bruce A., 1999. "Metamodeling Potential Nitrate Water Pollution in the Central United States," Staff General Research Papers Archive 1756, Iowa State University, Department of Economics.
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