 Experiences with Fertilizer Taxes in EuropeC. W. Rougoor, H. Van Zeijts, Markus Hofreither () and S. Backman Journal of Environmental Planning and Management, 2001, vol. 44, issue 6, 877-887 Abstract: A levy on nitrogen fertilizer is evaluated, using real life experiences in Austria, Finland and Sweden until 1995. In these countries such a levy system was introduced in 1986, 1976 and 1985, respectively. Rates varied from between 10% and 72% of the price of fertilizer. Price elasticity in these situations was estimated to vary between - 0.1 and - 0.5. In Austria the fertilizer industry at first did not pass the costs of the levy on to the farmers, but fertilizer use decreased by 15%, indicating that not only economic stimuli but also other aspects, such as a growing environmental awareness, influence fertilizer use as well. The decrease in fertilizer use in the three countries has probably led to a reduction of nitrogen load to the environment. Levy revenues were mainly used to support grain exports. Administration costs were low, about 0.75% of the tax revenues. It is concluded that a fertilizer tax as a policy instrument is not a perfect method, but that such economic instruments can be part of an effective policy mix to solve nitrogen problems. Date: 2001 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:jenpmg:v:44:y:2001:i:6:p:877-887 Ordering information: This journal article can be ordered from DOI: 10.1080/09640560120087615 Access Statistics for this article Journal of Environmental Planning and Management is currently edited by Dr Neil Powe, Dr Ken Willis and George Bill Page More articles in Journal of Environmental Planning and Management from Taylor & Francis Journals |
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