Crop loss due to air pollution in The Netherlands

The extent of yield reduction and economic loss caused by air pollution has been estimated for The Netherlands. Based on available data on direct effects only, each species was designated as sensitive, moderately sensitive or tolerant. On a nationwide scale, only ozone (O3), sulphur dioxide (SO2), and hydrogen fluoride (HF) exceeded effect thresholds. Effects from pollutant combinations were assumed to be additive. Yield reductions were calculated, using 10 exposure-response relationships and concentration data from the Dutch air pollution monitoring network. Changes in air pollution levels result in changes in supply. By multiplying the supply with the current price, the so-called crop volume was calculated. Subsequently, changes in crop volume were converted into economic terms, taking into account demand elasticity. On the basis of these calculations, air pollution in The Netherlands reduces total crop volume by 5%:3.4% by O3, 1.2% by SO2, and 0.4% by HF. The slope of the nonlinear relationship between crop volume reduction and exposure level increases at higher concentrations. In general, air pollution causes relatively little loss to producers, since yield reductions are largely compensated by higher prices. If air pollution in The Netherlands would be reduced to background concentrations, consumers would experience a net gain of Dfl 640 million (US 320 million dollars). Although large amounts of data were attained through literature and our own experience for this study, many assumptions still had to be made to arrive at these conclusions. With the current available knowledge, validation of our results in the field is not yet possible.