Negative Effects Of Fertilisers On Our Environment

Negative Effects Of plant foods On Our EnvironmentThe scope of this circulate is to examine the shun do of fertilizers on our environs. It pull up s call fors primarily center on on the Nitrogen Fertilisers, in that location make and solutions to combat those set up. Synthetic N plant foods ar angiotensin-converting enzymeness of the biggest ca engagement for eutrophcation. When excess fertiliser runs off to the water, it nates ca ingestions algal blooms, slant kills etc. Excessive northward in the crapulence water besides has prejudicial tack togethers on humans. The take and practical operation subprogram is one of the contributing factos to the Greenho r eruptine Gas emissions (GHG) as intumesce. The composition touches on the unseasoned(a)(prenominal) deuce primary segments in fertilisers, phosphate and potassium, however, we forget non go into detail hash outions.Fertiliser run-offs, mostly normality, is a head of great concern in Queensland where the run offs from adjacent sugar reproof and cattle farms argon polluting the water in the Great Barrier Reef. It is a great threat to the eco scheme of the Reef and mea positive(predicate)s take ons to be considered to slash this befoulment and exuberantly ways to rehabilitate and conserve the eco corpse of the Reef.Resultantly, in this state we discuss how an c wholly off policy privy help reduce these negative effects of N fertiliser. We look into ways of promoting innate fertilisers and aquaculturals with the help of the scrub, besides keeping in mind that the internalisation of the external make up should be one of the major profound policy liberates. We look into financial discounts and financial economic aid that whitethorn be unattached to farmers opting to use bloodamental fertilisers and switch to hydroponics. get going of the move revenue should be earmarked for these conceptions. We consider regulations that should be introduced to complim ent and puff the effects of the itch. The N-Replacement is a program where the blur is tested and the application of N is confined to only the amount that is required. In the fullness of time, all farmers should flummox to participate in such programs.Lastly, we examine the benefits and negative effects of the proposed strickle on the manufacturers, farmers and consumers. We leave also look at any administrative and compliance issues that may a compound with the introduction of the new happen upon. The role of the proposed inscribe in helping us worthy our commitments under the Kyoto Protocol is also examined.IntroductionThis report is about the effects that fertilizers adopt on our environment. small-arm the use of synthetic fertilizers has ensured an enormous boom in the agricultural sector, it has had its negative effects on the environment as well. The effects atomic number 18 at once related to issues comparable world-wide warming and glasshouse gas emissions, and practically more. The terce major elements of synthetic fertiliser be nitrogen, phosphate and potassium. The remedy that fertilisers induce on the environment can be divided into three broad categories natural resources (water, estate and air), wildlife and ecosystem and human health. Nitrogen fertilisers baffle the worsened effect on the environment with phosphate fol minoring closely. This report go out primarily focus on Nitrogen (N) fertilisers. It is beyond the scope of this report to discuss all the elements in fertilisers and discuss their effects. This is because variant elements confound unlike environmental effects and to a varying stratum. They all have different use in the land sedulousness as well. However, once the expunge model for the N nitrogen is established, a corresponding model can be used to impose mint on all the early(a) fertilisers.Nitrogen FertilisersWhen applied to the to soil to nourish kitchen-gardening land, treat, a deepen of nitrogen, can wash off the agriculture fields by substance of rain or irrigation and can leach into the step up or free- dwelling house water. Ground water is one of the sources of drinking water and excess nitrate in the drinking water can electric potentially cause cancer, respiratory distress in humans.In surface water, extra nitrogen may cause eutrophication, process of nutrient over enrichment. This is the primary cause of depletion in the oxygen level in coastal water. Coastal waters that hold an inflow from polluted rivers be the most unnatural. Eutrophcation is one of the biggest causes for coastal fish kill it is also responsible for the harmful algal blooms and imbalance in the coastal ecosystems.In Australia, the Great Barrier Reef is highly affected by diffuse pollutants. Most of it comes from nitrogen fertilizers used in cropping and browse lands in relatively small argonas of the adjacent catchments. According to a look conducted by the CSIRO on the Great Barr ier Reef, experts found that Export of nitrogen and phosphorus is high and increased hillslope erosion rates have leaveed in increased nutrient and sediment loads reaching and influencing inner ledge reef and benthic ecosystems. These pollutants atomic number 18 generated from diffuse sources and evidence from other geographical locations suggests that by the time their widespread effects argon identified, the reef systems volition be irreversibly damaged.Lastly, some of the nitrogen from the soil and water enters the melodic phrase as nitric oxide and the green house gas nitrous oxide. This has a wide range of negative consequences, starting from acid rain to acute shifts in dominant species and ecosystem function in forests and grassland ecosystems.Phosphate FertilisersPhosphate is respectable behind nitrogen when it comes to negative effects to the environment. Fluoride has been and is the worse environmental financial obligation that the phosphate fertiliser industry ha s deteriorateed on to the environment. Despite new sophisticated air pollution control technology which is resulting in less(prenominal) and less fluoride escaping into the atmosphere, the impact of fluoride emissions is still cosmos felt. Amongst other things, the fluoride in the air has the potential to cause a number of disorders in livestock, The actual take process of phosphate is also harmful to the environment and humans personifyly.Potassium FertiliserPotassium have not directly been related to any environmental pollution, even though it does have minor affect such as magnesium deficiency in crops and soil in the case of excessive applicationAs can be seen, the use of chemical fertilisers is very(prenominal) harmful to the environment. In attempting to protect the Great Barrier Reef, the State giving medication and the Commonwealth has initiated programs like the Reef Plan, the N Replacement project. However, these government initiatives have been criticised by a many environmental agencies such as the existence Wlidlife Fund (WWF) as being slow to achieve any concrete results. Government initiatives can only be effective when on that point is a drive from the widely distributed population to support those initiatives. The use of fertilisers in terra firma is essential to farmers as their profitability dep extirpates on the revert of the crops, which is predominantly the result of fertilisers. It is an essential resource to the farmers. In such a situation, the introduction of scrape up on synthetic nitrogen fertilizer and other chemicals used to maximise crop yield, can be one of the tools to discourage the use of such fertilisers and at the same time move on and the use of more environment fri fetch uply, non-chemical fertilisers and other farming alternatives. regularization of the Fertiliser industry using excise shine task can be used as one of the tools for the government to influence the agriculture industry and influence the le vel of pauperism for synthetic nitrogen fertilizer. By imposing excise, we create an artificial worth differential between the synthetic nitrogen fertilisers and its organic counterpart. This has the effect of farmers being more mindful about over application of the N fertiliser and using it sparingly.In case of bl deceaseed fertilisers, where all three elements are present, the nitrogen component leave behind be excisable. This is turn lead press the toil of fertiliser that have a low synthetic N fertiliser capacity..Apart from trying to campaign exp hold backing of low nitrogen content fertilizers, excise can also promote high(prenominal) consumption of organic fertilisers. This can be done similar to the fuel excise system in Australia, where excise is enforce on both organic and synthetic fertilizers, however, a full rebate may be available to the users of the organic fertilisers, making the effective rate of excise for organic fertiliser zero.In the fullness of time, w hen all fertilisers are included in the excise system, i.e. nitrogen, phosphate and potassium, differential excise rates may be introduced, where they all have different excise rate depend on the degree of severity of effects each of them on the environment. The idea is that, if an all purpose fertiliser is high in nitrogen than it leave behind have a higher worth tag (nitrogen is the most harmful element of the three) as opposed to an alternative blend that is high in potassium the higher the content of the most harmful chemical (N), the higher the price of the end product.There is an alternative to introducing fertilisers to the excise system. The government can promote and take active steps to make the agricultural industry consider hydroponic controlled environment agriculture. The principle advantage of hydroponics compared to tradition farming is the closing off of crops from the soil. As there is no soil involved there is no chance of drainage or problems associated with le eching of nitrogen to the ground or surface water. The fertilisers that are not used up by the plants are caught and reused.Excise rates and underlying reasonsIn setting the excise rate, we motivating to be mindful of the underlying policy objectives. The objectives areFor the agriculture industry to use fertilisers that are less harmful to the environment.To the use of alternative organic fertilisersTo promote hydroponics, an alternative system of farming.Internalise the external cost that the fertiliser industry imposes on the environmentThe external cost should be the main element that we should try to interiorize via the introduction of the excise valuate revenue. Charging consumers or producers for external cost, which should clear them to reduce their activities to the socially optimal level, is know as the Pigouvian prescription. This rule states that streamlined consumption or mathematical product can be achieved through the measure system by imposing an excise on th e activity equal to the marginal cost of the damage caused to other people. In trying to internalise the external cost of fertilizer pollution, many governments around the world are considering some traffic pattern of environment assess. In China, a study was undertaken on the external cost and optimum use of nitrogen fertiliser on the paddy field system of the Dongting Lake are. The research showed that the nitrogen fertiliser application in the region well exceeded the required levels. Such that, an environmental levy was suggested on the excess use of nitrogen fertiliser.In Australia, there is not much information available on the external cost of the agriculture industry. However, figures from other country gives us an idea of the external cost imposed by the industry. A US study estimates the externalised costs of agricultural production (in natural resources, wildlife, biodiversity and human health) to be between $5.7 and $16.9 billion annually is a broad estimate, it is no t Australian- specialised, nor restricted specifically to agriculture, but it does highlight the need to understand the environmental impacts of agriculture better in the Australian context.In Europe, the estimated external cost of nitrogen fertiliser is about 0.3 /kg N, stance in mind that the market price is of the fertiliser is about 0.5 /kg N. This effectively means, that if the whole amount was internalised whence the price of N fertilisers would rise by about 60%. For the purpose of this report we leave behind use the European figures as, mentioned earlier, there is not much Australian specific entropy available on the external cost of fertilisers. Now 60% excise on N fertiliser may seem like a staggering figure, however, when this excise is placed is conjunction with other regulation and policies the bring in effective excise will drop considerably. These issues will be discussed in the abutting section.Specific vs Ad valorem rateThe next issue in the rate setting proc ess is to determine if this rate is going to be specific or ad valorem. The choice between the options depends on the underlying policy, i.e. to raise revenue, discourage consumption, improvement of quality etc. Ad valorem tax revenue creates a price differential between similar excisable good base on quality where the high-quality products are dearer than the low-quality products. This is a good tax appliance if revenue maximisation is the underlying policy objective. However, if the main focus is to reduce harmful levels of consumption of any product, then specific tax is more appropriate. Specific or volumetric taxation is based upon the number of units sold, irrespective of their value and recognises that the potential for harm fall equally upon consumers or the elaborateness irrespective of the price of the item.Coming tooshie to the topic in hand, specific tax is the appropriate rate to use as we are very interested on the internalising the external cost of N fertiliser on the basis of $/kg N. If the tax is imposed on the value or the cost of production of the fertilisers, it will not properly reflect the negative effects that the application of N fertiliser has on our environment.Taxation vs RegulationIt is argued that taxation by itself will not always achieve the desire or complete results. Tax can influence the consumption shape of consumers to a certain extent but regulations are needed to back up the tax. High taxes on tobacco and drink reduce add up and commonly also excessive consumption. But a tobacco tax cannot deal in a cost effective way with the effects of passive smoking (inflexible) bans on smoking in public places are necessary to deal with this externality. Similarly, the alcohol excise is an inadequate instrument to constrain people from getting behind the wheel of their car subsequently they have had a drink. Drink-driving breath tests are better targeted to deal with this situation..Regulations can be in many forms, it ca n be requirements imposed on the end users, i.e., farmers or it can be regulations on the fertiliser manufacturers. In Germany, farmers are required to calculate and report annual nutrient balances in the soil in order to demonstrate that they have not over or under applied fertilisers. Imposing regulations on the manufacturers may not be of much use apart from quality control. The regulations should focus on the farmers instead, with knowledge based approaches to soil testing, promoting good agricultural practice and optimal use of nitrogen. This approach is in line with the new nitrogen management method acting N Replacement and in time this along with any other similar programs should be do mandatory. Apart from being environmentally dear it is also beneficial to farmers as under this method they will need to purchase and fall in only the amount of soil that is required by the soil, resulting in cost savings for the farmers.Another method of regulation, could be the issue of tradeable permits. However, under this system the costs associated is rather uncertain, compared to the excise system. A system of tradable permits guarantees the envisaged quantitative reducing in pollution but at an uncertain cost, while an environmental duty has an uncertain impact on the total of emissions but fixes the marginal cost of emission controls for polluters.Price elasticity and exciseFertilisers are a vital part of the agricultural industry. There is a very strong connection between application of fertilisers and crop yield and profitability. Therefore, it will not be wrong to conclude that the demand for fertilisers at bottom the agricultural industry is inelastic. Having said that a 60% excise on N fertiliser is going to affect the farmers the most. Because of the elasticity of demand, the economic incidence of the tax will fall on the farmers, where the fertiliser manufacturers will be able to pass on most of the tax burden to the farmers in form of higher price s. Therefore, it is important to come up with relief policies for the farmers as well, bearing in mind that we are also trying to promote the use of organic fertilisers and hydroponics method of productions at a vast scale. This will be discussed in more expand in the next section.Exemptions/exception for the excise system and whyThere should be exceptions, where the tax incidence for the farmers should be nil. Exemptions should be available to farmers in the form of a rebate. As one of the policy issue is to promote the use of organic fertilisers. Farmers should be entitle to a full or overtone rebate depending on if the fertilisers are solely organic or substantially organic. perfect fertilisers are largely derived from plan plants or animals. Substantially organic fertilisers are product where some synthetic fertilisers have been added to boost the nutrient content of the fertiliser.A rebate should also be available for farmers who pre dominantly practices or are in the proce ss of adopting hydroponics method of production. There are two reasons behind this exemption. First of all, the nitrogen used in hydroponics has no effect on the environment. The plants are grown in a controlled environment, usually in a greenhouse, therefore, there are no emissions, run offs or leeching. This effectively means there are no external costs associated with the application of nitrogen fertilizer under this system. Secondly, the biggest drawback of converting to hydroponics from the traditional method of agriculture is the high capital set up costs associated. Since we are trying to encourage more and more farmers to consider hydroponics, it only makes experience to provide some sort of relief to them in the form of current rebate to compensate for the high set up costs.Lastly, a partial rebate should also be available to farmers who are participating in recommended programs such as the N- Replacement program. The N-Replacement program has the potential of reducing ni trogen inputs by almost one third. The government can only have this rebate available till the program is fully tested and made mandatory. Till then farmers should be rewarded for voluntary participation in the program. tyrannical and negative effects from this new excisePositive effects depress demand for synthetic N fertiliser The introduction of the excise on the nitrogen fertiliser will lower the demand for it. As discussed earlier, because of the low price elasticity of demand, the fertiliser manufacturers will be able to pass on most of the tax burden to the farmers in the form of higher price. Higher prices will mean that farmers will now be more mindful when it comes to the application of the fertiliser. More and more farmers will be hale to practice good farming methods, only applying the amount that is required in order to present on cost of fertilisers.Less emission, leaching as a result As farmers starts to pay more attention to the wastage level and apply the optim al amount of nitrogen required to replenish the soil, there is less leeching and emission.Influx of excise revenue One of the unavoidable effects of imposing excise duty is the inflow of revenue. The revenue that comes in from this special(a) excise should be hypothecated. It should be used to finance projects that will aid in cutting down the use of N fertiliser application. somewhat of the pecuniary resource should also be earmarked for providing assistance to farmers switching to hydroponics.Helps the government to meet other policy issue As the application rate of the N fertilisers reduce, it helps the government meet other environmental related policies, such as Australias commitment under the Kyoto Protocol. This will be discussed in more details in the next setion.Negative effectsHigher cost of production for the farmers, which may be passed on consumers As discussed earlier, the imposition of excise will mean that the farmer will pay a higher price to purchase the fert ilisers. Even if optimal applications of N fertiliser methods are implemented, there would still be an increase in the cost of production for the farmers. This in turn would mean that the increased cost of production for the farmers will be passed on to the final consumers in form of higher prices for fresh fruit, veggie etc.Loss of revenue for the fertiliser manufacturers There will a significant loss of revenue for the fertilizer manufacturers, as they are the one who are actually liable for the excise payable. They will pass on the bulk of the tax to the agriculture industry, however, they will still loose out of a significant amount of profit.How will this new excise act with Australias commitment under the Kyoto Protocol to a lower place the Kyoto Protocol, Australia is committed to reduce its greenhouse emissions to 108 percent of the level we were in 1990. This target has to be achieved by 2012 (2008 -2012 is known as the first commitment period). According to a report on climate change, in 2008 the emissions for the agriculture sector are projected to be 77 Mt CO2 of emission over the Kyoto period. This is a 4% decrease on the 1990 level. Most of the decrease is, however, attributable to the drought. Therefore, introduction of this new excise will ensure that there is a significant reduction in greenhouse gas emissions.Apart from gas emission after the application of the N fertiliser, it also emits greenhouse gas during the production process. The production of fertilisers demands much energy and generates considerable greenhouse gas (GHG) emissions. Kongshaug (1998) estimates that fertiliserproduction consumes approximately 1.2% of the worlds energy and is responsible forapproximately 1.2% of the total GHG emissions. Therefore, when demand falls as a result of the new excise and regulations, the supply will eventually fall as well, with reduced production of synthetic N fertiliser. This, a ready, will result in reduced level of GHG emissions.Impact of the new excise onConsumers The excise will mean that the price of end products that are heavily dependant on the N fertiliser will increase. When excise is imposed on a commodity, even though the effective incidence lies with the producers, the ultimate tax burden falls on the end users of the finished product by means of higher price. Therefore, we need to be mindful of that while imposing the excise.Business The excise will not affect businesses much. Businesses or in this case, the retail shops are just diaphragm men. Any part of the tax that they do pay in form of higher wholesale prices, they simply pass it on to the consumers.Government revenues At first glance, it can be said that government revenue will also increase with this proposed excise. However, if we are to put the revenue aside, hypothecate the funds for the sole purpose of funding programs and assisting farmers in adopting more sustainable methods of farming, then in essence it will not be wrong to produc e that the government revenue stays the same. There is not extra gain as such from the revenue perspective to the government. Revenue generated from these policies could have an vector sum on the effect of these policies, depending on how it is used. If revenues from a tax are added to the general treasury store then the wellbeing of those affected by the tax is negatively affected as modelled, but if the funds are ring-fenced for a relevant purpose such as assisting the fertilizer industry or farmers, then the welfare of those actors is not diminished by as much. political science costs There should not be any extra cost related to the administration of the new excise. Currently the Australian Taxation mapping is responsible for the administration of all excisable and excise equivalent goods. The ATO is already well equipped to deal with excise tax. Moreover, under the self assessment political science where businesses calculate there own excise liabilities, the incremental chan ge on administration cost should be minimal. The taxing point should be dictated as the fertilisers are leaving the factory for delivery to wholesalers and/ or the internal market. This will further ensure ease of administration of the excise tax. shape activities The compliance activities on behalf of the businesses should be fairly straightforward as well. Under the self assessment system, businesses keep records and fill out their own excise return. Another section maybe introduced to the excise return, where farmers are eligible for a rebate. However, it should all be part of the prevailing excise return system that we currently have.RecommendationAfter examining the effects of synthetic fertilisers on our environment, curiously the N fertiliser, it is recommended that the excise tax of 60% at a specific rate should be imposed. It is true that the imposition of the tax may have a large impact on the fertiliser manufacturers and farmers. However, that is the initial impact. on with the excise, we should also provide rebates for the farmers, who act in accordance with out other policy objective. Farmers who look at alternative organic fertilisers should be entitled to a rebate as negative effects from organic fertilisers are minimal compared to its synthetic counterpart. Further rebates should be available to farmers switching to hydroponics, as the nitrogen content in the nutrient solution has no effect on the environment. Lastly, assistance should be available to farmers who make voluntary participation in good farming practices i.e. take part in practices like the N-Replacement program.Along with these financial laws, we should also implement some non financial regulations, which will ensure a superior result. Here, the goal is not make sure that the farmers are not applying excessive amount of synthetic N fertilisers to the soil and at the same time moving towards organic fertiliser. The tax will bring about that inclination in the farmers, they wil l want to apply the optimal amount of synthetic nitrogen in order to save cost on fertilisers and also look into cheaper alternatives which are more environmentally friendly. However, in the fullness of time, we need to introduce regulations, specially the one similar to Germany where the farmers needs to annually record and report the nutrient content of their farming land to the authorities. In the long run we should also make a N- Replacement plan mandatory, after it has been fully tested by CSIRO. We should also ear mark, some of the revenue from this new excise to help fund the programs and any similar programs.The new proposed excise policy combined with the proposed regulations is a little step towards Australia meet its commitment under the Kyoto Protocol. It is true the tax might hurt manufacturers, farmers and consumers, financially. However, we need to ensure that the external costs caused by the production and application of the fertiliser are being met, so that it refle cts on the price. It is the responsible thing to do, to pay the price for the harm that the industry is create the environment. It is a trade off we have to make to ensure a better world for the next generation. In order to stop global warming, bring balance back to our ecosystem, protect the Great Barrier Reef, it is a small price to pay.