Benefits of a reallocation of nitrate emission reductions in the Rhine river basin

In an attempt to improve ecological conditions of the Rhine, emission reduc tion targets have been set for different substances. For most substances ta rgets have been met. However, nutrient emission reductions are behind sched ule. It may be clear from intuition, and has also often been described in e conomic literature, that a flat reduction rate applied to all emitting sect ors, though appealing because of equity reasons, may not be cost-effective. This paper explores the least cost allocation of nitrate emission reductio ns for the Rhine river basin, analysing different agricultural sectors and wastewater treatment plants. Results show that costs of meeting emission re duction targets can be brought down by almost 20% through a clever allocati on of these targets.