The economics of nitrate pollution

Nitrogen is essential to plant growth, and yet excessive levels of nitrates in soil can cause problems of environmental pollution. In this paper, we first consider the nitrogen cycle, tracing the movements of nitrogen to and from soils. The problems of excessive nitrate levels are then outlined, being effects on human health, and eutrophication of water courses. Nitrate pollution is represented using an externality framework. The paper then addresses the costs and benefits of controlling nitrogen use in agriculture. Cost-estimates are presented, and the various control options spelt out. Benefit estimates are more problematical, but for both human health effects and eutrophication, some findings are presented