Assessment of environmental impacts following alternative agricultural policy scenarios

Abstract

Finnish agriculture is likely to undergo major changes in the near and intermediate future. The future policy context can be examined at a general level by strategic scenario building. Computer-based modelling in combination with agricultural policy scenarios can in turn create a basis for the assessments of changes in environmental quality following possible changes in Finnish agriculture. The analysis of economic consequences is based on the DREMFIA model, which is applied to study effects of various agricultural policies on land use, animal production, and farmers' income. The model is suitable for an impact analysis covering an extended time span – here up to the year 2015. The changes in land use, obtained with the DREMFIA model assuming rational economic behaviour, form the basis when evaluating environmental impacts of different agricultural policies. The environmental impact assessment is performed using the field scale nutrient transport model ICECREAM. The modelled variables are nitrogen and phosphorus losses in surface runoff and percolation. In this paper the modelling strategy will be presented and highlighted using two case study catchments with varying environmental conditions and land use as an example. In addition, the paper identifies issues arising when connecting policy scenarios with impact modelling.