The Potential for Nitrogen Abatement Trading in Agriculture: A Hypothetical Market Experiment.
Saved in:
| Title: | The Potential for Nitrogen Abatement Trading in Agriculture: A Hypothetical Market Experiment. |
|---|---|
| Authors: | Hansen, Line B. (AUTHOR), Termansen, Mette (AUTHOR), Hasler, Berit (AUTHOR) |
| Source: | Journal of Agricultural Economics. Sep2019, Vol. 70 Issue 3, p812-839. 28p. |
| Subjects: | Supply & demand, Watersheds, Environmental economics, Demand function, Pollution control costs |
| Abstract: | The effectiveness of nitrogen abatement trading as a policy measure relies on both heterogeneity in costs and environmental effectiveness across landscapes. Cost‐efficient implementation may therefore critically depend on spatial distributions of farm and farmer characteristics in water catchments. We use a spatially specific hypothetical market experiment to analyse the likelihood of farmers' enrolment into nitrogen abatement trading contracts, and derive demand and supply functions for farmers' nitrogen abatement. We find that farm characteristics influence both the decision whether to supply or purchase nitrogen abatement, as well as the amounts being traded. The derived demand and supply functions for farmers' N abatement, using hypothetical market experiment data, can be used to reveal the variability in costs of abatement within a market. This provides valuable information to test potential trading schemes ex ante, to evaluate potential economic gains from policy implementation. [ABSTRACT FROM AUTHOR] |
| Copyright of Journal of Agricultural Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) | |
| Database: | Engineering Source |
|
Full text is not displayed to guests.
Login for full access.
|
|
Be the first to leave a comment!
