2020
DOI: 10.1002/ajae.12003
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Dairy Farm Management when Nutrient Runoff and Climate Emissions Count

Abstract: We provide a theoretical framework and detailed bioeconomic simulations to examine privately and socially optimal dairy farm management in the presence of nutrient runoff and greenhouse gas emissions. Dairy farms produce milk by choosing herd size, diet, fertilization and land allocation between crops, as well as (discrete) manure storage and spreading technologies and the number of milking seasons. We show analytically that a critical radius emerges for the choice of land use between silage and cereal cultiva… Show more

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Cited by 12 publications
(20 citation statements)
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“…Unified here means that a policy instrument is the same despite the initial soil nutrient levels or the soil textures of the site. This is in line with the previous literature (Helfand & House, 1995; Lötjönen et al, 2020; Shortle et al, 1998). Based on our results we can conclude that a mixed policy instrument, where the static tax‐subsidy‐schemes are used with a dynamic subsidy for gypsum application would lead to outcome with almost‐zero welfare loss.…”
Section: Discussionsupporting
confidence: 93%
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“…Unified here means that a policy instrument is the same despite the initial soil nutrient levels or the soil textures of the site. This is in line with the previous literature (Helfand & House, 1995; Lötjönen et al, 2020; Shortle et al, 1998). Based on our results we can conclude that a mixed policy instrument, where the static tax‐subsidy‐schemes are used with a dynamic subsidy for gypsum application would lead to outcome with almost‐zero welfare loss.…”
Section: Discussionsupporting
confidence: 93%
“…First, and most importantly, large nutrient legacy stores are often in areas with high livestock density, and the spatial differentiation of crop and livestock production is often the underlying cause of the high nutrient legacies (Svanbäck et al, 2019). We could extend the model to include manure as an input, but then we should also consider a spatial dimension, because in such a case transport costs become essential future of the problem (Lötjönen et al, 2020; Sharara et al, 2017). Second, we ignored the impacts of climate change, which may have significant influence on agricultural productivity and the externalities on the long run (Gornall et al, 2010).…”
Section: Discussionmentioning
confidence: 99%
“…Provided that nutrient content in manure can be impacted by changing animal diet, manure creates a link between decisions concerning livestock and cultivation. Once this link is missing, livestock production and cultivation become entirely separate production lines (see Lötjönen et al 2020 for the proof). Our focus here is on linking agricultural decision-making in crop and livestock production to GHG emissions and showing how private farmers can be impacted by climate policies.…”
Section: Mitigation From An Economic and Policy Angle: A Frameworkmentioning
confidence: 99%
“…Our focus here is on linking agricultural decision-making in crop and livestock production to GHG emissions and showing how private farmers can be impacted by climate policies. We adopt our approach from Lötjönen et al (2020).…”
Section: Mitigation From An Economic and Policy Angle: A Frameworkmentioning
confidence: 99%
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