Nitrogen use and the effects of nitrogen taxation under consideration of production and price risks

Robert Finger
Production and price risks affect optimal nitrogen use as well as the effects of nitrogen taxation if farmers’ risk aversion is taken into account. We apply a bio-economic model to investigate the influence of risk aversion on nitrogen use in Swiss maize production. Income risks for farmers are expected to increase in the future, for instance, due to higher price variability caused by market liberalization or by higher yield variability caused by climate change. We...
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