Consumption of Nitrogen Fertilizers in the EU—External Costs of Their Production by Country of Application

Agnieszka Sobolewska () and Marcin Bukowski
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Agnieszka Sobolewska: Institute of Economics and Finance, Warsaw University of Life Sciences—SGGW, Nowoursynowska 166, 02-787 Warsaw, Poland
Marcin Bukowski: Institute of Economics, University of Applied Sciences in Elbląg, Wojska Polskiego 1, 82-300 Elbląg, Poland

Agriculture, 2025, vol. 15, issue 3, 1-18

Abstract: The production of nitrogen fertilizers results in multiple negative environmental impacts. A particularly important aspect is its energy consumption. Analyses covering the product’s life cycle indicate that the greatest environmental harm is generated at the stage of production due to the resulting nitrogen dioxide emissions. The aim of this study was to assess the economic value of the environmental harm caused by the production of the nitrogen fertilizers used in EU farming. The assessment of the environmental damage resulting from the production of mineral nitrogen fertilizers was conducted through a life cycle assessment (LCA). A ‘gate-to-gate’ approach was applied using Sima Pro 7.1.0.2 software, with the ecoinvent 3 and agri-footprint 5 databases. The value of the external costs for the production of nitrogen fertilizers was determined by applying the environmental prices method. The analysis conducted covered the years 2012–2021. The results indicated a decrease in the environmental damage caused by the production of mineral nitrogen fertilizers used in EU agriculture. There was considerable disparity between individual EU member countries, both in terms of trends concerning the amounts of applied nitrogen fertilizer and the efficacy of their use. In the years 2012–2021 in 18 EU countries, the amount of mineral nitrogen fertilizers used in farming grew, with the greatest increases in Romania, Spain, and Hungary, whereas in 9 countries, their use dropped, with the greatest decreases recorded in Germany, France, and Poland. Marked differences were also found in the efficacy of the use of mineral nitrogen fertilizers, as measured based on the value of the environmental harm caused by the production of the applied fertilizers in relation to the value of the field crop produced.

Keywords: environmental cost; environmental impact of agriculture; field production value; LCA; nitrogen fertilizers (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2025
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