The Impact of Crop Price on Nitrous Oxide Emissions: A Dynamic Programming Approach

Ruohong Cai, Xin Zhang and David Kanter

No 170691, 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota from Agricultural and Applied Economics Association

Abstract: The use of N fertilizer in agriculture is a major source of Nitrous Oxide, an important greenhouse gases. Market-based instruments, such as incentives or taxes, may help reduce Nitrous Oxide emission by changing Nitrogen application rate. Using a dynamic programming approach, we found that changing corn price or fertilizer price have effects on both farm profit and Nitrogen application rate. However, farm profit and Nitrogen rate always change in the same direction when affected by either input or output prices. Furthermore, as the corn price is relatively higher than the fertilizer price, changing the corn price is more effective in influencing Nitrogen rate, and thus Nitrous Oxide emission. This analysis can provide policymakers with useful information when designing Market-based tools to help reduce Nitrous Oxide emissions and mitigate global warming.

Keywords: Agricultural and Food Policy; Farm Management; Production Economics (search for similar items in EconPapers)
Pages: 17
Date: 2014-05-28
New Economics Papers: this item is included in nep-agr and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/170691/files/A ... oxide%20emission.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea14:170691

DOI: 10.22004/ag.econ.170691

Access Statistics for this paper

More papers in 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().