Markets of concentration permits: The case of manure policy

Abstract

Concentration permits are regarded as an interesting policy tool for regulating emissions where, besides absolute amounts, also local concentration is important. However, effects of governance structure, trading system and possible policy interventions in the permits' allocation are not yet well analysed and understood. This paper explores in how far tradable fertilisation standards can be seen as a concentration permit trading (CPT) system which can be fine-tuned for further policy intervention. Indeed fertilisation standards such as obliged by the EU Nitrate Directive can be regarded as local nitrate emissions limits, and thus concentration permits. A multi-agent spatial allocation model is used to simulate the impact of defining the manure problem in terms of concentration permits rather than conventional emission permits. Impacts are simulated in terms of environmental performance and increased reallocation costs. The model is applied on the Flemish manure problem.

Manure management and soil biodiversity: Towards more sustainable food systems in the EU

“…The grading and labelling of manure (ingredients) can help to better monitor the effects of short-and long-term application of specific types of manure in various agricultural conditions (soil, crop, climate). Such standardised procedures will allow tracking the relocation of manure and its nutrients (Bernal et al, 2017;Musacchio et al, 2020), enabling redistribution of nutrients from surplus areas to arable areas (Hanserud et al, 2017), as applied in the Netherlands ( Van der Straeten et al, 2011). Also, a transparent, standardised manure quality will facilitate the transport to nutrient-deficient regions (Luostarinen et al, 2018).…”

Minimising the societal costs of manure management: Modelling the optimal strategy and location for nutrient recycling

“…To limit agricultural emissions to the environment in the European Union's (EU) Nitrates Directive (ND) limits livestock manure applications to 170 kg N ha -1 y -1 [5]. This regulation has led to the implementation of emission concentration permit trading policies [6]. The current emission permit-based manure policy lacks efficacy [7] and fails to meet environmental targets despite the high economic costs [8].…”

Identifying phosphorus hot spots: A spatial analysis of the phosphorus balance as a result of manure application

“…Therefore, location matters and a regulative approach, which considers the individual location in space, would be more cost-effective and economic efficient (Van der Straeten, Buysse, Nolte, Lauwers, Claeys & Van Huylenbroeck 2011). A tradeable concentration permit system or a phosphorus tax system, which theoretically will provide an economic efficient outcome, is difficult to administer in situations, in which the marginal damage and marginal benefits differ significantly in space and time (Goetz & Zilberman 2000, Van der Straeten et al 2011. A system of spatial limitations, like zoning, can be additionally introduced, which, determines the level of allowed phosphorus concentration in the case of the permit trading system or the level of the tax in case of a price regulation system locally.…”