Lessons learnt from the application of tradable permits in the Flemish animal production sector

Tradable permits are often used as a policy toolinstrument to control market supply or environmental effectsimpacts. Examples of policies based on tradable permits can be foundAlso within the Flemish livestock production sector, examples of policies based on tradable permits can be found, e.g. for example, in the dairy and manure policy: the dairy production is controlled by the imposition of dairy quotas;, the manure policy is based on a set of three systems of tradable permits. This dissertation, for the first time, places for the first time the different policy measures within under the manure policy in thewithin a framework of tradable permits. It is shown demonstrated that fertilization fertilisation standards are constitute an application of tradable concentration permits. This new framework offers new insights on into the manure policy, as it allows topermits analysis of analyse the impact of individual measures, and but at the same time to takeprovides a global view on of the manure policy itself. Based on these new findings the relevance of keeping retaining NPR’s as a policy tool is discussed, and an ex-ante assessment of the new manure policy is made. The largest partA large proportion of the dissertation focusses on the impact of individual policy measures within both the manure as and dairy policypolicies. It is shown that cChoices of where towith regard to the point of intervenetion along the pollution chain, of how strongthe strength of intervention, and in whichthe manner in which it modifiesto steer farmer’s behaviour and how tothe organiszeation of the associated enforcement strategy have a large substantial impact on the efficiency, effectiveness and farmer behaviour. Policy choices in with regard to the organization organisation of the permit market also have also a large major impact on the functioning of the policy. Trade limitations impact the on the efficiency, the and structural development of the sector, and even can even undermine the effectiveness of the policy. In most cases the policy maker will havehas to make a trade-off between the efficiency and effectiveness of the policy,. hHowever, this is not always the case - as shown forindicated in relation to the derogation option. It is important to take care with regardpay particular attention to the implementation details of the system itself and the organization organisation of the market. In Within this dissertation, tools are described which can help assist in creating such an overall view.