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Best Management Practices and Nutrient Reduction: An Integrated Economic-Hydrologic Model of the Western Lake Erie Basin

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  • Hongxing Liu
  • Wendong Zhang
  • Elena Irwin
  • Jeffrey Kast
  • Noel Aloysius
  • Jay Martin
  • Margaret Kalcic
Abstract
We develop the first spatially integrated economic-hydrologic model of the western Lake Erie basin explicitly linking economic models of farmers’ field-level best management practice (BMP) adoption choices with the Soil and Water Assessment Tool to evaluate nutrient management policy cost-effectiveness. We quantify trade-offs among phosphorus reduction policies and find that a hybrid policy coupling a fertilizer tax with cost-share payments for subsurface placement is the most cost-effective and can achieve the policy goal of 40% reduction in nutrient loadings. We also find economic adoption models alone can overstate the potential for BMPs to reduce nutrient loadings by ignoring biophysical complexities.

Suggested Citation

  • Hongxing Liu & Wendong Zhang & Elena Irwin & Jeffrey Kast & Noel Aloysius & Jay Martin & Margaret Kalcic, 2020. "Best Management Practices and Nutrient Reduction: An Integrated Economic-Hydrologic Model of the Western Lake Erie Basin," Land Economics, University of Wisconsin Press, vol. 96(4), pages 510-530.
    • Handle: RePEc:uwp:landec:v:96:y:2020:i:4:p:510-530
    Note: DOI: 10.3368/wple.96.4.510
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    Cited by:

    1. Shr, Yau-Huo (Jimmy) & Zhang, Wendong, 2024. "Omitted downstream attributes and the benefits of nutrient reductions: Implications for choice experiments," Ecological Economics, Elsevier, vol. 222(C).
    2. repec:ags:aaea22:335895 is not listed on IDEAS
    3. Yau-Huo Shr & Wendong Zhang, 2021. "Do Iowa Residents and Farmers Care about Improving Water Quality and Reducing Harmful Algal Blooms? Results from Two Household Surveys," Center for Agricultural and Rural Development (CARD) Publications 21-pb32, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. David Wolf & Sathya Gopalakrishnan & H. Allen Klaiber, 2022. "Staying afloat: The effect of algae contamination on Lake Erie housing prices," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(5), pages 1701-1723, October.
    5. Madhu Khanna, 2022. "Breakthroughs at the disciplinary nexus: Rewards and challenges for applied economists," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(2), pages 475-492, March.
    6. Liu, Yanan & Klaiber, Allen, 2022. "The Impact of Harmful Algal Blooms on Household Averting Expenditure," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322117, Agricultural and Applied Economics Association.
    7. Yau-Huo Shr & Wendong Zhang, 2021. "Does Omitting Downstream Water Quality Change the Economic Benefits of Nutrient Reduction? Evidence from a Discrete Choice Experiment," Center for Agricultural and Rural Development (CARD) Publications 21-wp620, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    8. Howard, Gregory E. & Zhang, Wendong & Valcu-Lisman, Adriana M., 2021. "Evaluating the Efficiency-Participation Tradeoff in Agricultural Conservation Programs: The Effect of Reverse Auctions, Spatial Targeting, and Higher Offered Payments," 2021 Annual Meeting, August 1-3, Austin, Texas 313926, Agricultural and Applied Economics Association.
    9. Souto, Augusto & Carriquiry, Miguel A. & Rosas, Juan Francisco, 2021. "Assessing the Impact of Agricultural Intensification on Water Pollution: An Integrated Model Assessment of the San Salvador Basin in Uruguay," 2021 Annual Meeting, August 1-3, Austin, Texas 314037, Agricultural and Applied Economics Association.
    10. Gregory Howard & Wendong Zhang & Adriana Valcu‐Lisman & Philip W. Gassman, 2024. "Evaluating the tradeoff between cost effectiveness and participation in agricultural conservation programs," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(2), pages 712-738, March.
    11. Yanan Liu & H. Allen Klaiber, 2023. "Don’t Drink the Water! The Impact of Harmful Algal Blooms on Household Averting Expenditure," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(1), pages 29-55, October.

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    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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