Posts Tagged ‘market failure’

A ghost from the past.

October 28, 2008


This is a phrase from yesterday, which concerned phosphorus from toilets, but I thought it could be a provoking headline. But maybe a quesionmark is needed.


In some respect we have gosts from the past also in agricultural lands: soils with excessively high phosphorus contents. Also in that respect Sweden is in a favourable position. Our situation is a distant goal for many neighbouring areas.


However, there are large areas with unnecessarily high phosphorus contents. These should be reduced, which is more interesting with the high P prices of today. But a reduction of the soil content takes time.


A soil content of P-AL 6 is enough for normal agricultural crops. Higher content is a resource to utilize. A true win-win situation for economy and environment.


The problem is farms with animal production and fully utilized spreading area for manure. They cannot adjust the P application easily. Cooperation with neighbours – easier said than done.

There is a modification of my system Farming Perspectives which could help.


In fact there is a kind of market failure. When the individual enterprise is optimized the longterm aspects cannot fully be considered for reasons of competition.


When the rules of the society are compromizing longterm environmental aspects a change is needed. In a global market it should be a global action, but while waiting for that national programs are possible: adequate rules with economic compensation