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On levies to reduce the nitrogen surplus: The case of Dutch pig farms

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Abstract

Pig farms in the Netherlands pay a zero or low price for using the environment. As a consequence, the environment is overused. The Dutch government wants to reduce the emissions of nitrogen and phosphorus. Possible instruments are regulation and levies. In this study a levy on feed and a levy on the nitrogen surplus are investigated, by incorporating a bad output in the production model. The model is estimated using panel data of Dutch pig farms over the period 1975–1989. Levies on nitrogen turn out to be more cost-effective than levies on feed.

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Authors and Affiliations

  1. Catholic University of Brabant, P.O.B. 90153, 5000, LE Tilburg, The Netherlands

    Peter F. Fontein

  2. Agricultural University Wageningen, The Netherlands

    Geert J. Thijssen

  3. London School of Economics, United Kingdom and Center for Economic Research, Catholic University of Brabant, The Netherlands

    Jan R. Magnus

  4. Agricultural Economic Research Institute (LEI-DLO), The Hague, The Netherlands

    Jan Dijk

Authors
  1. Peter F. Fontein
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  2. Geert J. Thijssen
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  3. Jan R. Magnus
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  4. Jan Dijk
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Fontein, P.F., Thijssen, G.J., Magnus, J.R. et al. On levies to reduce the nitrogen surplus: The case of Dutch pig farms. Environ Resource Econ 4, 455–478 (1994). https://doi.org/10.1007/BF00691923

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  • DOI: https://doi.org/10.1007/BF00691923

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