Does scale matter – costeffectiveness of agricultural农业规模问题农业的成本效益.pptVIP

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Does scale matter – costeffectiveness of agricultural农业规模问题农业的成本效益.ppt

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Does scale matter? Cost-effectiveness of agricultural nutrient abatement when target level varies Antti Iho Presentation at the XIth EAAE Congress August 25 Cost-effectiveness in agri-environmental policy Most economic studies on pollution externalities focus on cost-effectiveness Political agendas often require it (e.g.WFD) A seemingly simple concept with many practical complications Our focus on target level variation’s implications on cost-effectiveness of agricultural nutrient reduction, phosphorus in particular Motivation: Biological characteristics make the need for agricultural nutrient load reduction often basin or even lake spesific Example: inland lake might be phosphorus or nitrogen sensitive under heavy or mild recreational use i.e. source of different economic benefits WFD requires cost-effectiveness of supplementary measures Assume many almost identical basins with a variety of reduction targets Can they benefit of each others cost-effectiveness assessments? What are the implications of ”scaling” cost-effective allocations? CE 1: one measure, two heterogenous parcels ___ =Buffer strip MAC for a gentle slope field ___ =Buffer strip MAC for a steep slope field Aggregate abatement: Ag+As, where Ag ≠ As CE 2: two measures, single parcel / n homogenous parcels ___ =Buffer strip MAC for all parcels ___ =Fertiliser reduction MAC for all parcels Aggregate abatement: Ab+Af, where Ab ≠ Af CE 2: two measures, single parcel / n homogenous parcels As the (marginal) abatement cost functions differ, each measure contribute to total abatement differently at its all levels CE 3: two measures, single parcel / n homogen. parcels, 2 constraints Aggregate abatement low constraint: AfL+AbL high constraint: AbH+ AfH The ratios of abatement per measure differ as target changes The aim To quantify this variation in abatement contributions and to answer: How severely is the cost-effectiveness property violated when abatement contribution ratios are used as guidel