Introducing individual transferable quotas on nitrogen in Danish fresh water aquaculture: production and profitability gains
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Introducing individual transferable quotas on nitrogen in Danish fresh water aquaculture : production and profitability gains. / Nielsen, Rasmus.
I: Ecological Economics, Bind 75, 2012, s. 83-90.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Introducing individual transferable quotas on nitrogen in Danish fresh water aquaculture
T2 - production and profitability gains
AU - Nielsen, Rasmus
PY - 2012
Y1 - 2012
N2 - The purpose of this paper is to investigate the potential gains from changing the existing regulatory framework for fresh water aquaculture production in Denmark. The regulatory framework is changed from an input regulation based on farm-specific feed quotas, to an individual transferable quota system on nitrogen pollution. The regulatory change is analyzed using Data Envelopment Analysis to model the underlying production structure. The effect of allowing trading of nitrogen quotas on production and profitability is analyzed in a joint production model with good and bad output under different behavioral and technical assumptions, whilst keeping the overall pollution level of nitrogen constant. Furthermore, the effect of a catchment area restriction on nitrogen is analyzed to comply with the EU Water Framework Directive. The paper quantifies the gains of a policy change from a command and control system to an incentive based system. The estimated results suggest that the changed regulation could increase Danish aquaculture production by 16 to 55%, whilst actual profitability could be increased 5 to 10 times.
AB - The purpose of this paper is to investigate the potential gains from changing the existing regulatory framework for fresh water aquaculture production in Denmark. The regulatory framework is changed from an input regulation based on farm-specific feed quotas, to an individual transferable quota system on nitrogen pollution. The regulatory change is analyzed using Data Envelopment Analysis to model the underlying production structure. The effect of allowing trading of nitrogen quotas on production and profitability is analyzed in a joint production model with good and bad output under different behavioral and technical assumptions, whilst keeping the overall pollution level of nitrogen constant. Furthermore, the effect of a catchment area restriction on nitrogen is analyzed to comply with the EU Water Framework Directive. The paper quantifies the gains of a policy change from a command and control system to an incentive based system. The estimated results suggest that the changed regulation could increase Danish aquaculture production by 16 to 55%, whilst actual profitability could be increased 5 to 10 times.
U2 - 10.1016/j.ecolecon.2012.01.002
DO - 10.1016/j.ecolecon.2012.01.002
M3 - Journal article
VL - 75
SP - 83
EP - 90
JO - Ecological Economics
JF - Ecological Economics
SN - 0921-8009
ER -
ID: 37714100