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How Inefficient Are Nutrient Application Limits? A Dynamic Analysis of Groundwater Nitrate Pollution from Concentrated Animal Feeding Operations
Author(s) -
Wang Jingjing,
Baerenklau Kenneth A.
Publication year - 2015
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/ppu023
Subject(s) - environmental science , irrigation , pollution , nonpoint source pollution , groundwater , nitrate , manure , water pollution , groundwater pollution , pollutant , nutrient pollution , fertilizer , environmental engineering , water resource management , aquifer , engineering , ecology , geotechnical engineering , biology , chemistry , organic chemistry , environmental chemistry
Animal waste from concentrated animal feeding operations (CAFOs) is a significant contributor to nitrate contamination of groundwater. To evaluate the cost‐effectiveness of alternative policies for controlling nitrate pollution at both the field and farm level, this article utilizes a structural dynamic model of a representative CAFO. The model accounts for herd management, manure handling systems, crop rotations, water sources, irrigation systems, waste disposal options, and pollutant emissions. Results show that the standard approach of limiting the amount of animal waste that may be applied to fields reduces net farm income by more than 25%, whereas the most cost‐effective emission‐based policies reduce income only marginally. This motivates greater consideration for nonpoint source pollution control policies that target estimated emissions. Furthermore, price instruments are shown to slightly outperform quantity instruments under conditions that are typical for CAFOs. The results also show that adopting alternative technologies and practices is crucial for cost‐effective abatement, and demonstrate the importance of accounting for the spatial heterogeneity of both irrigation water and salinity when designing policy mechanisms for nitrate pollution control.