Cost of abating excess nitrogen on wheat plots in France: An assessment with multi‐technology modelling

H Dakpo (), Yann Desjeux and Laure Latruffe
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H Dakpo: UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]

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Abstract: We use a multi-equation model of polluting technologies to evaluate excess nitrogen's marginal abatement cost (MAC). The MAC is estimated using the convex non-parametric quantile regression. The empirical application is conducted at the plot level for wheat production in France in 2017. Results show a median shadow price for excess nitrogen of about €21 per kilogram. If the current European Union's Nitrates Directive (which sets a 170-kg constraint on organic nitrogen per hectare) were extended to mineral nitrogen, this would allow a reduction of total excess nitrogen by 9.5%, but this would be accompanied by a 3.1% decrease in wheat revenue.

Keywords: Convex quantile; Excess nitrogen; Marginal abatment cost; Multi-equation; Shadow price (search for similar items in EconPapers)
Date: 2023
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Published in Journal of Agricultural Economics, inPress, ⟨10.1111/1477-9552.12534⟩

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Journal Article: Cost of abating excess nitrogen on wheat plots in France: An assessment with multi‐technology modelling (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04081036

DOI: 10.1111/1477-9552.12534

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