darko znaor
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Externalities of Nitrogen FertilisersDr Darko Znaor
Contents
1. Why N fertilisers?2. How to assess its
externalities?3. Policy implications
WHY N FERTILISERS?
Benefits of N fertilisersBenefits of N fertilisers
• Higher yields• Cheap (“value for money”)• Easy to transport, store & apply• Non-toxic & non-smelling• Enhance C storage in biomass
• Higher yields• Cheap (“value for money”)• Easy to transport, store & apply• Non-toxic & non-smelling• Enhance C storage in biomass
Downside of N fertilisers - manufacturingDownside of N fertilisers - manufacturing
• Energy intensive (fosil fuels)
• Polluting• Often subsidised
• Energy intensive (fosil fuels)
• Polluting• Often subsidised
• Environmental problems (air/climate, soil, water, BD)
• Declining yield response• Secondary effects (pests, weeds, freezing, etc.)• Fertiliser dependency
Downside of N fertilisers - applicationDownside of N fertilisers - application
N fertilisers consumption 2000-2011
Source: IFA, 2013
A METHODOLOGICALFRAMEWORK
for assessing N fertilisers
externalities
A framework for assessing N fertilisers externalitiesA framework for assessing N fertilisers externalities
Damage to:• Air• Climate• Water• Soil• Biodiversity
Damage to:• Air• Climate• Water• Soil• Biodiversity
Subsidies:• Production• Transport• Application
Subsidies:• Production• Transport• Application
External cost
External cost
QUANTIFICATION OF EMITTED POLLUTANTS
CO2
N2O
SO2
NOx
NH3
PM10
PM 2.5
Data source: UNFCCC, LRTAP, Gothenburg Protocol & E-PRTR
NOx
NH3CO2
N2
O
N2
O
Atmos. depos.indirect
N2
O Leaching& run-off
Soil
Leachingindirect NO3
NO2
NH4
Source of data: UNFCCC & LRTAP reports, N balances
MONETARISATION
Pollutant
Damage (EUR/t)Method
Low High
CO2 33*
33*
Marginal abatment cost
NH3 1,335*
76,193*
VSL or VOLY
NOx 647*
51,580*
VSL or VOLY
PM 2.5 7,134 *
124,873*
VSL or VOLY
PM 10 4,632*
81,086*
VSL or VOLY
N (water)
100**
4,000**
VSL (colon cancer)
N (water)
5,000**
20,000**
WTP (eutrophication)
Monentarisation of emissions
* EEA, 2011. Revealing the costs of air pollution from industrial facilities in Europe. European Environment Agency, Cohenhagen.
** Sutton et al. (eds.), 2011. The European Nitrogen Assessment. Cambridge University Press. Cambridge .
UK agriculture: environmental cost of N fertilisers
Source: own calculation
216 EUR per ha or 36% of UK’s agrculture gross-value added
POLICYIMPLICATIONS
Two-track policy approach Two-track policy approach
1. Economic instruments (“market”) • Deterring (taxes, levies, fines,
etc.)• Stimulating (subsidies, lower
VAT, etc.)
2. Awareness raising (“church”)
1. Economic instruments (“market”) • Deterring (taxes, levies, fines,
etc.)• Stimulating (subsidies, lower
VAT, etc.)
2. Awareness raising (“church”)
CONCL
USI
ONS
N fertilisers = a mixed blessing
• A cornerstone of doping agriculture• Based on fosil fuels = unsustainable =
lovely while it lasts!• Huge externalities (e.g. 36% of UK’s
agric. GVA)• A two-track policy needed• Green taxes (short-term)
THANK [email protected]