Pierre Rainelli

Abatement of agricultural pollution and economic incentives: The case of intensive livestock farming in France

Amongst possible economic incentives to encourage reduced nitrate contamination of water, this paper emphasizes a nitrogen tax as a possible solution. This finding is based on models estimated from panel data for 100 intensive livestock farms. For each farm a threshold is established (nitrogen units which can be spread per hectare without damage) above which there is an excess of nitrogen. The 100 farms can consequently be classified into two subsamples. The demand for nitrogen is derived for each sub-sample using the dual approach. Both categories are pooled together and a tobit model is estimated. This is used to derive total nitogen demand if all farms were under the threshold. A mineral nitrogen tax would lead to a reduced nitrate concentration in water supplies, because of a more efficient use of organic nitrogen together with a reduction in the use of mineral nitrogen in crop production.

The provision of amenities by agriculture and rural tourism.

The appeal of rural areas for recreation and tourism is directly linked to the increase in income and the urbanisation process. Higher incomes encourage the demand for environmental quality, since they are accompanied by higher education, increasing the awareness of pollution and its harmful effects. The industrialised world, and the consequent urbanisation, explain the appeal of extra-urban environments in the context of a push-pull model of motivation (Pigram, 1993). For urban dwellers, a rural environment appears to support various opportunities to experience compensatory alternative surroundings and cultural or recreational activities.