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How Cost-Effective Is A Mixed Policy Targeting The Management Of Three Agricultural N-pollutants?

C. Bourgeois, N. B. Fradj, Pierre-Alain Jayet
Published 2014 · Environmental Science, Economics

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This paper assesses the cost-effectiveness of a mixed policy in attempts to reduce the presence of three nitrogen pollutants: NO 3, N 2O, and NH 3. The policy under study combines a tax on nitrogen input and incentives promoting perennial crops assumed to require low input. We show that the mixed policy improves the cost-effectiveness of regulation with regard to nitrates, whereas no improvement occurs, except for a very low level of subsidy in some cases, for gas pollutants. A quantitative analysis provides an assessment of impacts in terms of land use, farmers’ income, and nitrogen losses throughout France and at river-basin scale.
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