3 Comments
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Nitin Pandit's avatar

Indeed, incentives on the supply side may not add up to much.

However, demand side incentives (for behavior change like better BMPs and other farming practices) may be able to reduce demand in the first place. That may be much more effective.

Michael Barnard's avatar

It's the incentive question. Nothing focuses the mind like a key ingredient costing more. Displacement follows.

"That is a screening case, not a grocery-price forecast. It assumes the cost increase applies across the basket as though all food had a corn-like fertilizer exposure. It assumes full cost pass-through, no substitution, no efficiency response and no change in application rates. "

In other pieces I have assessed a variety of demand reduction approaches. I'm bullish on precision agriculture, especially drone-spraying with online platform integration of crop health insights from multiple datastreams, including more drones.

Nitin Pandit's avatar

These are strong assumptions, and may be screening out obvious alternatives on the demand side.

Do send links for the demand reduction approaches. However, traditionally the EE community refers to end use driven approaches as demand management approaches.