Policy Instruments for Reducing Nitrogen Fertilizer Based Emission: Under Policy Conflict of Self Sufficiency of Food versus Sustainable Management of Agriculture

Huda FA and Khan MA

Abstract

The paper discusses an alternative policy instrument to reduce nitrogen fertilizer based emission in agriculture compared to existing fertilizer subsidy for food self-sufficiency policy. The relative efficiency of fertilizer subsidy policy assessed in terms of budgeting resources and sustainable management of agriculture. It concern of nitrogen leaching and other related atmospheric emission control as climate change adaptation. An analytical framework of ex-post evaluation is developed to access the alternative incentive policies instead of fertilizer subsidy in Bangladesh, which may control emission. It observes the preliminary phase fertilizer subsidy policy efficiently contribute to increase food production. Using partial equilibrium analysis marginal productivity of fertilizer found zero or even negative. Although distributional implication of inputs subsidy is quite high but over dozes of cheap fertilization seriously emit the air as well as hampers water quality and soil. Finally, the implication of results suggests that for any kind of reduction or control in nitrogen fertilizer based emission from agriculture, this policy planner could explore the direct incentives programme instead of subsidized fertilizer any more. The existing subsidy policies contribute to use more than optimum level of fertilizer use especially nitrogen-based fertilizer.