Contribution of Improving Nitrogen Use Efficiency to Agricultural Economics in Europe

Abstract

Contribution of improving nitrogen use efficiency (NUE) to the European agricultural economy was evaluated for the year 2020 for all European countries. For this purpose, the economic benefit of using fewer nitrogenous mineral fertilizers has been revealed for a 5% improvement in NUE and attaining maximum NUE. The Eurostat/OECD gross nutrient balance methodology was used to calculate NUE values and the amount of nitrogenous mineral fertilizer that will be used less when the NUE is improved. The results showed that improving NUE would result in significant economic benefits; even if NUE was improved by 20%, the benefit would be greater than half the cost of purchasing nitrogenous mineral fertilizers. Yearly economic benefits from purchasing nitrogenous mineral fertilizers in Europe would be 2.6 and 10.7 billion euros for a 5% improvement in NUE and a maximum NUE in 2020, respectively. According to the findings of the study, increasing NUE by reducing N mineral fertilizer use would result in significant economic benefits.