Estimating the Range of Impacts Arising from Nitrate Leaching Reduction Policies Using Farm Accounts

CSERGE Working Paper No. ECM 07-02

32 Pages Posted: 26 Aug 2008

See all articles by Carlo Fezzi

Carlo Fezzi

University of East Anglia (UEA) - School of Environmental Sciences

Dan Rigby

University of Manchester - Centre for Agricultural, Food and Resource Economic Studies

Ian J. Bateman

University of East Anglia (UEA) - School of Economic and Social Studies

David Hadley

University of New England (Australia) - School of Business Economics and Public Policy; University of East Anglia (UEA) - School of Environmental Sciences

Paulette Posen

affiliation not provided to SSRN

Date Written: February 1, 2007

Abstract

Declining agricultural incomes, increasing concern over rural poverty and sporadic crises such as those of BSE and Foot and Mouth Disease mean that the imposition of additional costs on UK agriculture are likely to be politically and socially sensitive. Such additional costs are however on the agenda with the implementation of the Water Framework Directive (European Commission, 2000). Like the Nitrates Directive (European Commission, 1991) before it, the WFD aims to, inter alia, reduce nitrate leaching from agriculture. The benefits of reduced nitrate concentrations in rivers and lakes will come at some cost to farms. In this study we assess four possible WFD measures proposed to Defra: reduced inorganic fertiliser application, conversion of arable land to un-grazed grassland, reduced livestock stocking rates and reduced livestock dietary N intakes. For each measure, changes in farm gross margins are estimated using a panel dataset of over 3000 farms. In contrast to previous analyses which have focussed upon mean responses at stylised farms, our approach allows analysis of the range of impacts across a wide variety of real-world farms and farm types. Findings reveal high variability in impacts and cost-effectiveness analysis indicates that, on average, cropping farms seems capable of reducing nitrate leaching in a more cost-efficient way than livestock or dairy enterprises.

Keywords: Water Framework Directive, farm financial impacts, farm accounts, nitrate

JEL Classification: Q15, Q18, Q53

Suggested Citation

Fezzi, Carlo and Rigby, Dan and Bateman, Ian Julian and Hadley, David and Posen, Paulette, Estimating the Range of Impacts Arising from Nitrate Leaching Reduction Policies Using Farm Accounts (February 1, 2007). CSERGE Working Paper No. ECM 07-02. Available at SSRN: https://ssrn.com/abstract=1258861 or http://dx.doi.org/10.2139/ssrn.1258861

Carlo Fezzi (Contact Author)

University of East Anglia (UEA) - School of Environmental Sciences ( email )

Norwich, Norfolk
United Kingdom

Dan Rigby

University of Manchester - Centre for Agricultural, Food and Resource Economic Studies ( email )

Oxford Road
Manchester M13 9PL, M13 9PL
United Kingdom
0161 275 4808 (Phone)

Ian Julian Bateman

University of East Anglia (UEA) - School of Economic and Social Studies ( email )

Norwich, Norfolk NR4 7TJ
United Kingdom

David Hadley

University of New England (Australia) - School of Business Economics and Public Policy ( email )

Armidale, NSW 2351
Australia

University of East Anglia (UEA) - School of Environmental Sciences ( email )

Norwich, Norfolk
United Kingdom

Paulette Posen

affiliation not provided to SSRN ( email )

Register to save articles to
your library

Register

Paper statistics

Downloads
38
Abstract Views
997
PlumX Metrics