Analysis of nitrate pollution control policies in the irrigated agriculture of Apulia Region (Southern Italy): A bio-economic modelling approach

Nitrate leaching is one of the many forms of environmental pollution resulting from irrigation and intensive agriculture. In this work, a method of combining an agronomic simulation model (EPIC) and a mathematical multi-objective programming model is used to analyse the effects of three agricultural policies on farmer’s revenue and nitrate leaching. An evaluation of the net social costs associated with the different policy measures is also given. The farmer’s behaviour in different policy scenarios was studied in terms of selected crops, irrigation technique and method, and adopted management practices with focus on farm management practices and water application efficiency. Irrigation water pricing, subsidies to adopt improved management levels, and taxation on the use of nitrogen fertilizer were examined. A trade-off emerges between the levels of nitrate leaching and net farmer’s revenue more pronounced for nitrogen tax policies than for water pricing. The results obtained indicate that nitrate leaching can be reduced by about 40% with an associated net social cost of 269 €/ha for the water pricing policy, 183 €/ha for the tax on fertilizer and 95 €/ha for subsidies to high efficiency management.