Designing efficient agri-environmental policies for agricultural nutrient load reductions calls for information on the costs of emission reduction measures. This study develops an empirical framework for estimating abatement costs for nutrient loading from agricultural land. Nitrogen abatement costs and the phosphorus load reductions associated with nitrogen abatement are derived for crop farming in south-western Finland. The model is used to evaluate the effect of the Common Agricultural Policy reform currently underway on nutrient abatement costs. Results indicate that an efficiently designed policy aimed at a 50% reduction in agricultural nitrogen load would cost € 48 to € 35 million, or € 3756 to € 2752 per farm.Key-words: water pollution, agriculture, abatement, nitrogen, phosphorus, nutrient load
IntroductionExcessive concentrations of nutrients that regulate phytoplankton growth cause eutrophication of marine and freshwater ecosystems. The most heavily loaded marine areas in Europe show symptoms of severe eutrophication (see for example AErtebjerg et al. 2001). The Baltic Sea ecosystem has proved particularly vulnerable to nutrient pollution. Blooms of toxic blue-green algae occur during the warm summer months, and filamentous algae cover the seabed in coastal areas. Eutrophication results in significant damages through reduced value of fisheries and recreational activities (e.g. Gren et al. 1997, Söderqvist and Scharin 2000, Sandström et al. 2000, Kosenius 2004. Nutrient loading from land-based sources and the atmosphere builds up nutrient concentrations. The state of eutrophied water ecosystems can be improved by reducing nutrient loads from inland sources, which include agriculture, municipalities and industry. Agriculture has been identified as the major source of eutrophying nutrients in developed countries (see e. g. Shortle and Abler 2001). For example in the Nordic countries, municipal and industrial nutrient
A G R I C U L T U R A L A N D F O O D S C I E N C E
Helin, J. et al. Abatement costs for agricultural nutrient load in SW Finlandloads have been reduced significantly during the last few decades, while agricultural nutrient loads remain substantial (HELCOM 2005).Linking nutrient load reductions with the costs of those reductions is essential for informed decision making. Abatement costs are relatively easy to assess in the case of municipal and industrial point-source pollution, whereas quantifying abatement costs for agricultural non-point pollution poses a challenge (see e.g. Russel and Shogren 1993). Nutrient removal at municipal and industrial sources requires setting up wastewater treatment facilities, after which chemical or biological nutrient removal occurs at an approximately constant cost. Agricultural abatement instead takes place through changes in agricultural practices and through adopting abatement measures that filter runoff, such as buffer strips and wetlands. Nutrient loading is affected both by agricultural management practices, such as crop choice, fertilizer use, and til...
In order to integrate ecosystem services (ES) in designing agri-environmental policy, we investigated both the demand for, and supply of, ES from agricultural environments in Finland. Using the discrete choice experiment method, we measured citizens’ willingness to pay (WTP) for four different ES and analysed farmers’ compensation request (willingness to accept [WTA]) for producing these services. Biodiversity and water quality gathered the highest WTA of farmers, but also the highest WTP of citizens. Overall, the average WTA exceeded the WTP for almost all attributes and levels, but 20–27 per cent of farmers were willing to produce the ES with the compensation lower than citizens’ WTP.
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