Article: Fertiliser taxation and regulation of nonpoint water pollution: a critical analysis based on European experiences Journal: International Journal of Water (IJW) 2004 Vol.2 No.4 pp.247 - 266 Abstract: In Europe, the effectiveness of current forms of control of nonpoint nitrogen pollution is considered to be weak. This assessment highlights the need to introduce more efficient modes of regulation. Many economists recommend a simple tax based on known polluting factors, for example a tax on purchases of mineral fertilisers. In addition to its simplicity of application and low information cost, one can argue that this tax has already been implemented in several European countries and could prefigure a more general decision at European Union level. However, the same economists disagree as to the valuation of the decreasing use of fertilisers that could be expected, since the issue of the price-elasticity of demand is highly controversial. The aim of this paper is to present a critical assessment of research undertaken up to now and of actual experiences in taxation. We also highlight the role of determining factors in long-term trends in the consumption of nitrogen fertilisers in European countries. Inderscience Publishers - linking academia, business and industry through research

Title: Fertiliser taxation and regulation of nonpoint water pollution: a critical analysis based on European experiences

Authors: Francois Bel, Gerard Drouet D'Aubigny, Anne Lacroix, Amedee Mollard

Addresses: GAEL, Grenoble Applied Economics Laboratory, Unite Mixte INRA – Universite Pierre Mendes France, BP 47, 38040 Grenoble Cedex 09, France. ' LABSAD, Laboratoire de Statistiques et d'Analyse de Donnees, Universite Pierre Mendes France, BP 47, 38040 Grenoble Cedex 09, France. ' GAEL, Grenoble Applied Economics Laboratory, Unite Mixte INRA – Universite Pierre Mendes France, BP 47, 38040 Grenoble Cedex 09, France. ' GAEL, Grenoble Applied Economics Laboratory, Unite Mixte INRA – Universite Pierre Mendes France, BP 47, 38040 Grenoble Cedex 09, France

Abstract: In Europe, the effectiveness of current forms of control of nonpoint nitrogen pollution is considered to be weak. This assessment highlights the need to introduce more efficient modes of regulation. Many economists recommend a simple tax based on known polluting factors, for example a tax on purchases of mineral fertilisers. In addition to its simplicity of application and low information cost, one can argue that this tax has already been implemented in several European countries and could prefigure a more general decision at European Union level. However, the same economists disagree as to the valuation of the decreasing use of fertilisers that could be expected, since the issue of the price-elasticity of demand is highly controversial. The aim of this paper is to present a critical assessment of research undertaken up to now and of actual experiences in taxation. We also highlight the role of determining factors in long-term trends in the consumption of nitrogen fertilisers in European countries.

Keywords: nitrogen fertilisers; nitrogenous pollution; economic instruments; fertiliser taxation; Europe; price-elasticity; nonpoint nitrogen pollution control; fertiliser regulation; water pollution.

DOI: 10.1504/IJW.2004.005525

International Journal of Water, 2004 Vol.2 No.4, pp.247 - 266

Published online: 12 Oct 2004 *

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Title: Fertiliser taxation and regulation of nonpoint water pollution: a critical analysis based on European experiences

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