Farm Economic Consequence of New Regulation Model for Nitrogen in Denmark

The study presented in this seminar examines the economic consequences for farmers to comply with regulation related to the utilized agricultural area in the New Nitrogen regulation in Denmark under different quota distribution models.

The seminar briefly describes the New Nitrogen regulation in Denmark followed by a description of the NUAR-model, which is the model applied to the assess the economic consequences.

The spatially distributed results are ranging from a gain to losses of about 1000 DKK pr hectare on average for farmland within a coastal water catchment area across different catchments. The economic consequences within a coastal water catchment area are unrelated to quota distribution model because no transactions costs are assumed in the model.