GTAP Resources: Resource Display
| GTAP Resource #7519 |
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"Achieving Planetary Boundaries through Economic Policies: Global Impacts of Local Fertilizer Taxes " by Haqiqi, Iman, Jannes Breier, Christoph Müller, Dieter Gerten and Thomas Hertel Abstract Agriculture is a primary contributor to water quality degradation and ecosystem disruption, with particularly high impacts in regions of intensive fertilizer use. While market-based instruments such as taxes on nitrogen fertilizer have been proposed to reduce the application, the broader economic implications of such policies remain uncertain. This paper investigates the local and global economic effects of imposing taxes on nitrogen fertilizer use in regions with high nitrogen leaching. We develop and apply a novel global gridded partial equilibrium model, SIMPLE-G, linked to the LPJmL dynamic vegetation model to evaluate the implications of these location-specific interventions. Our approach accounts for grid-cell level heterogeneity in input substitution, crop production responses, and trade dynamics, enabling a spatially explicit assessment of policy impacts. We introduce a new integration of emulated Gompertz yield functions and nitrogen leaching functions into the economic model, capturing nonlinearities and spatial differences in fertilizer efficiency and pollution. This study provides a simple experiment of a uniform tax. The simulation of a 100% nitrogen fertilizer tax in high-leaching zones demonstrates significant reductions in nitrogen runoff in targeted areas (up to 37% in parts of Eastern Europe) while highlighting important market-mediated spillovers. |
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- Environmental policies - Trade and the environment - Economic geography - Multi-scale and geospatial modeling - Global |
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Public Access  Paper (379.2 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
