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Author: Meyer-Aurich, Andreas × Publisher: Basel : MDPI AG ×

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    Effectivity and Cost Efficiency of a Tax on Nitrogen Fertilizer to Reduce GHG Emissions from Agriculture
    (Basel : MDPI AG, 2020) Meyer-Aurich, Andreas; Nadi Karatay, Yusuf; Nausediene, Ausra; Kirschke, Dieter
    The use of nitrogen (N) fertilizer substantially contributes to greenhouse gas (GHG) emissions due to N2O emissions from agricultural soils and energy-intensive fertilizer manufacturing. Thus, a reduction of mineral N fertilizer use can contribute to reduced GHG emissions. Fertilizer tax is a potential instrument to provide incentives to apply less fertilizer and contribute to the mitigation of GHG emissions. This study provides model results based on a production function analysis from field experiments in Brandenburg and Schleswig-Holstein, with respect to risk aversion by calculating certainty equivalents for different levels of risk aversion. The model results were used to identify effective and cost-efficient options considering farmers’ risk aversion to reduce N fertilizer, and to compare the potential and cost of GHG mitigation with different N fertilizer tax schemes. The results show that moderate N tax levels are effective in reducing N fertilizer levels, and thus, in curbing GHG emissions at costs below 100 €/t CO2eq for rye, barley and canola. However, in wheat production, N tax has limited effects on economically optimal N use due to the effects of N fertilizer on crop quality, which affect the sale prices of wheat. The findings indicate that the level of risk aversion does not have a consistent impact on the reduction of N fertilizer with a tax, even though the level of N fertilizer use is generally lower for risk-averse agents. The differences in N fertilizer response might have an impact on the relative advantage of different crops, which should be taken into account for an effective implementation of a tax on N fertilizer.
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    Greenhouse Gas Mitigation Costs of Reduced Nitrogen Fertilizer
    (Basel : MDPI AG, 2022) Meyer-Aurich, Andreas; Karatay, Yusuf Nadi
    The reduction of nitrogen (N) fertilizer use is a possible greenhouse gas (GHG) mitigation option, whereas cost estimation highly depends on assumptions of the yield response function. This paper analyzes the potential and range of GHG mitigation costs with reduced N fertilizer application based on empirical yield response data for winter rye (Secale cereale L.) and rapeseed (Brassica napus L.) from field experiments from 2013 to 2020 in Brandenburg, Germany. The field experiments included four to five N rates as mineral fertilizer treatments. Three different functional forms (linear-plateau, quadratic, and quadratic-plateau) were estimated to model yield response as a function of N supply. Economic calculations were based on relevant price–cost ratios. The results indicate that the opportunity costs of applying less fertilizer and the resulting GHG mitigation thereof vary in a great range across the years and crops estimated by different yield response functions. The linear-plateau function predominantly results in lower GHG mitigation costs than the quadratic and the quadratic-plateau function. On average, over eight years, a moderate reduction of N fertilizer (up to 20 kg/ha) offers a cost-efficient option for mitigating GHG emissions below EUR 50 per ton of CO2eq, even resulting in net profit gain in some cases.