Cross-achievements between policies for drinking water protection

Environmental dynamics have important spatial dimensions, which calls for a spatial approach in policy analyses. Further to this, assessing agri-environmental policies involves analyses of individual measures as well as their combined effects on farmer behaviour and the environment. The integration of an economic behavioural model in a spatial framework has enabled analyses of a geographically targeted subsidy scheme for drinking water protection in combination with a uniform tax on commercial nitrogen fertilizer. Results show that policy measures for reducing nitrogen use can have combined effects (cross-achievements), thereby affecting each other’s cost-effectiveness. Cross-achievements between a nitrogen fertilizer tax and a subsidy scheme based on elicitation are shown not to be additive, making partial analyses of policy measures more uncertain.