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Externalities of Nitrogen Fertilisers
Dr Darko Znaor
Contents
1. Why N fertilisers?
2. How to assess its externalities?
3. Policy implications
WHY N FERTILISERS?
Benefits of N fertilisers
•
•
•
•
•

Higher yields
Cheap (“value for money”)
Easy to transport, store & apply
Non-toxic & non-smelling
Enhance C storage in biomass
Downside of N fertilisers - manufacturing

•
•
•

Energy intensive (fosil fuels)
Polluting
Often subsidised
Downside of N fertilisers - application

•
•
•
•

Environmental problems (air/climate, soil, water, BD)
Declining yield response
Secondary effects (pests, weeds, freezing, etc.)
Fertiliser dependency
N fertilisers consumption 2000-2011

Source: IFA, 2013
A METHODOLOGICAL
FRAMEWORK
for assessing N fertilisers
externalities
A framework for assessing N fertilisers externalities

Damage to:
•
•
•
•
•

Subsidies:

Air
Climate
Water
Soil
Biodiversity

• Production
• Transport
• Application

External cost
QUANTIFICATION
OF EMITTED POLLUTANTS
CO2
N2O

SO2
NOx
NH3

PM10
PM 2.5

Data source: UNFCCC, LRTAP, Gothenburg Protocol & E-PRTR
Atmos. depos.
indirect

CO2
N2O

N2O

NOx
NH3

Source of data: UNFCCC & LRTAP reports,
N balances

N2O
Leaching
& run-off
Soil
Leaching
indirect

NO3

NO2 NH4
MONETARISATION
Monentarisation of emissions
Pollutant

Damage (EUR/t)
High
Low

CO2
NH3
NOx

33*
1,335*

PM 2.5

647*
7,134 *

PM 10
N (water)
N (water)

4,632*
100**
5,000**

33*
76,193*
51,580*
124,873*
81,086*
4,000**
20,000**

Method

Marginal abatment cost
VSL or VOLY
VSL or VOLY
VSL or VOLY
VSL or VOLY
VSL (colon cancer)
WTP (eutrophication)

* EEA, 2011. Revealing the costs of air pollution from industrial facilities in Europe.
European Environment Agency, Cohenhagen.
** Sutton et al. (eds.), 2011. The European Nitrogen Assessment. Cambridge
University Press. Cambridge .
UK agriculture: environmental cost of N fertilisers
216 EUR per ha or 36% of UK’s agrculture gross-value added

Source: own calculation
POLICY
IMPLICATIONS
Two-track policy approach
1. Economic instruments (“market”)
• Deterring (taxes, levies, fines, etc.)
• Stimulating (subsidies, lower VAT, etc.)
2. Awareness raising (“church”)
THANK YOU!
darko@znaor.eu

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External Costs of Nitrogen Fertiliser Use

Editor's Notes

  1. http://ngm.nationalgeographic.com/2013/05/fertilized-world/essick-photography#/11-shanghai-workers-scatter-fertilizer-670.jpg
  2. http://ngm.nationalgeographic.com/2013/05/fertilized-world/essick-photography#/14-only-sub-saharan-plant-producing-low-cost-urea-fertilizer-670.jpg2% of global energy use
  3. In the 70-ties it was 30,000 t http://www.pbl.nl/sites/default/files/cms/publicaties/bouwman_pedosphere.pdf
  4. United Nations Framework Convention on Climate Change (UNFCCC), The Convention on Long-range Transboundary Air Pollution (LRTAP Convention)Protocol to Abate Acidification, Eutrophication and Ground-level Ozone (Gothenburg Protocol)The European Pollutant Release and Transfer Register
  5. The vast majority of NH3 emissions — around 94 % in Europe — come from the agricultural sector. indirect emissions following deposition of NH3 and NOx (1% of N deposited as NH3and NOx is subsequently re-emitted as N2O), or leaching or run off (2.5 % of Nleached or run off, IPCC Worksheet 4-5, sheets 4 and 5).