A Critical Review of the External Costs of Nitrogen Fertiliser Use

As global population, income and the demand for food rises, increasing quantities of nitrogen fertiliser are used in agricultural activities to enhance the supply of food. While using nitrogen fertiliser increases agricultural production, it also pollutes, which poses a threat to the state of the natural environment and, in some situations, to human health. Although there are many studies on the various types and extent of pollution caused by nitrogen, few studies account for the external costs caused by pollution from nitrogen fertiliser. In this paper a systematic review of the literature was done to collate and synthesise published studies into the external economic losses caused by nitrogen fertiliser pollution. This information should help inform policy makers and stakeholders, to enable improved understanding about the external economic losses caused by nitrogen fertilisers, and to lead to better decisions about reducing pollution from nitrogen used to produce agricultural products. However, none of the reviewed studies report a marginal external cost, so policy makers do not yet have the correct information on which to base efficient intervention decisions.