Journal Article

Dynamic Optimization of Nitrogen Use When Groundwater Contamination Is Internalized at the Standard in the Long Run

Satya N. Yadav

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 79, issue 3, pages 931-945
Published in print August 1997 | ISSN: 0002-9092
Published online August 1997 | e-ISSN: 1467-8276 | DOI: http://dx.doi.org/10.2307/1244433
Dynamic Optimization of Nitrogen Use When Groundwater Contamination Is Internalized at the Standard in the Long Run

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  • Renewable Resources and Conservation
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An economic relationship between agricultural production and groundwater pollution is established first by analyzing the problem in a dynamic setting. Using experimental data from 1987 to 1990 from three sites, optimal policy rules that would maintain the nitrate contamination level at the 10 mg/l standard over time are determined next. Nitrogen application rates are then determined based on the optimal policy rule and available residual nitrogen in the root-zone layer. It is shown that in the first year one of the sites should be fertilized at a lower-than-profit-maximizing rate while the other two sites should not be fertilized at all.

Keywords: dynamic optimization; nitrate contamination; nitrogen recommendation optimal policy rule; Q110; Q250; Q280

Journal Article.  0 words. 

Subjects: Renewable Resources and Conservation ; Agricultural Economics

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