Abstract: This paper assesses the cost-effectiveness of a mixed policy in attempts to reduce the presence of three nitrogen pollutants: NO (3), N O-2, and NH (3). The policy under study combines a tax on nitrogen input and incentives promoting perennial crops assumed to require low input. We show that the mixed policy improves the cost-effectiveness of regulation with regard to nitrates, whereas no improvement occurs, except for a very low level of subsidy in some cases, for gas pollutants. A quantitative analysis provides an assessment of impacts in terms of land use, farmers’ income, and nitrogen losses throughout France and at river-basin scale.