Crop production, water pollution, or climate change mitigation—Which drives socially optimal fertilization management most?

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Sihvonen , M , Hyytiäinen , K , Pihlainen , S , Salo , T & Lai , T-Y 2021 , ' Crop production, water pollution, or climate change mitigation—Which drives socially optimal fertilization management most? ' , Agricultural Systems , vol. 186 , 102985 . https://doi.org/10.1016/j.agsy.2020.102985

Title: Crop production, water pollution, or climate change mitigation—Which drives socially optimal fertilization management most?
Author: Sihvonen, Matti; Hyytiäinen, Kari; Pihlainen, Sampo; Salo, Tapio; Lai, Tin-Yu
Other contributor: University of Helsinki, Department of Economics and Management
University of Helsinki, Helsinki Institute of Sustainability Science (HELSUS)
University of Helsinki, Teachers' Academy
University of Helsinki, Environmental and Resource Economics






Date: 2021-01
Language: eng
Number of pages: 21
Belongs to series: Agricultural Systems
ISSN: 0308-521X
DOI: https://doi.org/10.1016/j.agsy.2020.102985
URI: http://hdl.handle.net/10138/321784
Abstract: We introduce a multistep modeling approach for studying optimal management of fertilizer inputs in a situation where soil nitrogen and carbon dynamics and water and atmosphere externalities are considered. The three steps in the modeling process are: (1) generation of the data sets with a detailed simulation model; (2) estimation of the system models from the data; (3) application of the obtained dynamic economic optimization model considering inorganic and organic fertilizer inputs. We demonstrate the approach with a case study: barley production in southern Finland on coarse and clay soils. Our results show that there is a synergy between climate change mitigation and water protection goals, and a trade-off between pollution mitigation and crop production goals. If a field is a significant source of greenhouse gas (GHG) emissions and an insignificant source of water pollution, atmospheric externalities dominate the water externalities, even for a relatively low social cost of carbon (SCC). If a field is a significant source of water pollution, the SCC would have to be very high before atmospheric externalities dominate water externalities. In addition, an integrated nutrient management system appears better than a system in which only inorganic or organic fertilizer is used, although manure is not a solution to agriculture's GHG emissions problem. Moreover, GHG emissions and nitrogen and carbon leaching mitigation efforts should first be targeted at coarse soils rather than clay soils, because the marginal abatement costs are considerably lower for coarse soils.
Subject: 415 Other agricultural sciences
Carbon sequestration
Climate change
Crop production
Soil carbon
Soil nitrogen
Water pollution
SOIL CARBON SEQUESTRATION
LONG-TERM TILLAGE
ORGANIC-MATTER
TEMPERATURE SENSITIVITY
NITROGEN-FERTILIZATION
AGRICULTURAL PRODUCTIVITY
DYNAMIC OPTIMIZATION
PLANT RESPIRATION
SEQUESTER CARBON
GREENHOUSE GASES
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