Abatement costs for agricultural nitrogen and phosphorus loads: a case study of South-Western Finland

Summary

Designing efficient agri-environmental policies for agricultural nutrient load reductions calls for information on the costs of emission reduction measures. This study develops an empirical framework for estimating abatement costs for nutrient loading from agricultural land. Nitrogen abatement costs and the phosphorus load reductions associated with nitrogen abatement are derived for crop farming in southern Finland. The model is used to evaluate the effect of the Common Agricultural Policy reform currently underway on nutrient abatement costs. Results indicate that an efficiency designed policy aimed at a 50 % reducton in agricultural nitrogen load would cost 25 to 28 million euro, or 1995 to 2197 euro per farm.