Economic Incentives and Alternative Nitrogen Regulation Schemes: A Spatial Sector Economic Modelling Approach

Jørgen D. Jensen () and Jens E. Ørum
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Jørgen D. Jensen: University of Copenhagen
Jens E. Ørum: University of Copenhagen

Chapter Chapter 14 in Agricultural Cooperative Management and Policy, 2014, pp 267-280 from Springer

Abstract: Abstract The objective of this chapter is to investigate economic incentives associated with changes in nitrogen regulation, including the distribution between farm types and geographically. The analysis is carried out on a partial equilibrium simulation model of the Danish agricultural sector—ESMERALDA. The model is based on farm-level production and economic data for all Danish farms, which allow the analysis of spatial aspects related to the alternative regulations, in terms of environmental (in terms of nitrogen use) and economic effects. Results of the model analyses suggest that replacing the current flat-rate quota on nitrogen input on all farms with a more differentiated quota on nitrogen leaching will in particular be binding for crop and pig farms in environmentally sensitive areas.

Keywords: Shadow Price; Nitrogen Application; Farm Type; Economic Optimum; Nitrogen Regulation (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:comchp:978-3-319-06635-6_14

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DOI: 10.1007/978-3-319-06635-6_14

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