Nitrate pollution from agriculture is an important environmental problem, caused by the excessive use of inorganic fertilizers. The internalization of this externality, via a tax on mineral nitrogen, could lead to a second best solution, reducing nitrate emissions. Several authors suggest that a reduction in agricultural support could produce similar results. In this paper we examine the effects of a nitrogen levy on nitrate pollution from agriculture in northern France under two different policy scenarios corresponding to (i) the Agenda 2000 and (ii) the Luxembourg reform of 2003, including the 2006 arrangement. The analysis aims at revealing what synergies or conflicts are created between a fertilizer levy and the policy scenarios, with respect to... |