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The Potential for Nitrogen Abatement Trading in Agriculture: A Hypothetical Market Experiment
Journal of Agricultural Economics ( IF 3.4 ) Pub Date : 2019-02-18 , DOI: 10.1111/1477-9552.12319
Line B. Hansen , Mette Termansen , Berit Hasler

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.

中文翻译:

农业氮素减排贸易的潜力:一个假设的市场实验

氮减排贸易作为一项政策措施的有效性既取决于成本的异质性,也取决于整个景观的环境有效性。因此,具有成本效益的实施可能严重取决于集水区农场和农民特征的空间分布。我们使用空间特定的假设市场实验来分析农民加入氮减排贸易合同的可能性,并得出农民减少氮的需求和供给函数。我们发现农场特征既影响供应还是购买氮减排的决定,也影响交易量。使用假设的市场实验数据得出的农民氮减排的供求函数可用于揭示市场内减排成本的变化。
更新日期:2019-02-18
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