Least-cost control of agricultural nutrient contributions to the Gulf of Mexico hypoxic zone

Sergey Rabotyagov, Todd Campbell, Manoj Jha, Philip Gassman, Jeffrey Arnold, Lyubov Kurkalova, Silvia Secchi, Hongli Feng and Catherine Kling

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: In 2008, the hypoxic zone in the Gulf of Mexico, measuring 20 720 km2, was one of the two largest reported since measurement of the zone began in 1985. The extent of the hypoxic zone is related to nitrogen and phosphorous loadings originating on agricultural fields in the upper Midwest. This study combines the tools of evolutionary computation with a water quality model and cost data to develop a trade-off frontier for the Upper Mississippi River Basin specifying the least cost of achieving nutrient reductions and the location of the agricultural conservation practices needed. The frontier allows policymakers and stakeholders to explicitly see the trade-offs between cost and nutrient reductions. For example, the cost of reducing annual nitrate-N loadings by 30% is estimated to be US$1.4 billion/year, with a concomitant 36% reduction in P and the cost of reducing annual P loadings by 30% is estimated to be US$370 million/year, with a concomitant 9% reduction in nitrate-N.

Date: 2010-09-01
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Working Paper: Least Cost Control of Agricultural Nutrient Contributions to the Gulf of Mexico Hypoxic Zone (2010)
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