Agro-environmental Policy Impacts on Regional Economics, Land Use, and Ecosystem Services in New Zealand

Adam Daigneault, Senior Economist at Landcare Research New Zealand, will present on September 15th in Room 105 of the Agricultural Administration Building (2120 Fyffe Road) as part of the AEDE Applied Economics Seminar Series. His presentation will focus on agro-environmental policy impacts on regional economics, land use, and ecosystem services in New Zealand.

The seminar is sponsored by Ohio State’s Environmental Policy Initiative, which is led by AEDE's Professor Brent Sohngen and which focuses on stimulating and focusing systematic collaboration in environmental policy through research, graduate and undergraduate education, communication with the policy community, and interaction with the national and international community of scholars in environmental policy.

Abstract: This seminar explores the potential implications of several New Zealand agro-environmental policies on farm income, land use and the environment. Specifically, it uses the New Zealand Forest and Agricultural Regional Model (NZFARM), to assess the impacts of proposed climate and water policies in New Zealand at the district level. The spatially explicit economic model estimates changes in land use, agricultural output, farm management and environmental outputs. The policies investigated include a range of carbon prices on land-based emissions ($0-30/tCO2e) as well a range of prices on nitrogen (N) leaching from diffuse sources ($0-30/kgN). We estimate that implementing stand-alone GHG and nutrient emissions reduction policies for the land use sector could create some environmental benefits outside the scope of the policy, but not necessarily all environmental outputs, while resulting in losses to net farm revenue by between 0 and 11%. Simultaneously implementing the two policies may result in desired goals of reductions in N and GHG emissions without placing much more economic burden on landowners in particular regions or sectors in New Zealand (i.e., 1-2% additional loss in farm profit relative to a stand-alone policy). We also find that additional measures may also have to be taken into account when seeking to protect or enhance other environmental concerns or ecosystem services beyond the scope of the policy.

The Environmental Policy Initiative will host a reception prior to the seminar beginning at 11:45am in front of Ag Admin Room 105. The event is open to the Ohio State community and RSVPs are not required.