Smart Subsidy?
It is often argued that subsidizing fertilizer and other inputs is desirable both to boost agricultural production and to help poor farmers. This analysis of Malawi’s huge Farmer Input Subsidy Program highlights a tension between these two objectives: The more FISP increases fertilizer use and thereby raises output, the greater the distortion and hence the lower the welfare gains from the program. Indeed, the empirical results indicate that up to 59% of every Kwacha spent on the FISP is wasted, in the sense that the fertilizer is not sufficiently valued by the beneficiaries. Cashing out the program is shown to have desirable distributional implications.
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Format: | Report biblioteca |
Language: | English en_US |
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World Bank, Washington, DC
2016-06-01
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Subjects: | Farmer Input Subsidy Program, FISP, agricultural productivity, poor farmers, fertilizers, income distribution, |
Online Access: | http://documents.worldbank.org/curated/en/2016/07/26595743/smart-subsidy-welfare-distributional-implications-malawi’s-fisp https://hdl.handle.net/10986/24946 |
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dig-okr-10986249462024-08-07T19:53:24Z Smart Subsidy? Welfare and Distributional Implications of Malawi’s FISP Jacoby, Hanan Farmer Input Subsidy Program FISP agricultural productivity poor farmers fertilizers income distribution It is often argued that subsidizing fertilizer and other inputs is desirable both to boost agricultural production and to help poor farmers. This analysis of Malawi’s huge Farmer Input Subsidy Program highlights a tension between these two objectives: The more FISP increases fertilizer use and thereby raises output, the greater the distortion and hence the lower the welfare gains from the program. Indeed, the empirical results indicate that up to 59% of every Kwacha spent on the FISP is wasted, in the sense that the fertilizer is not sufficiently valued by the beneficiaries. Cashing out the program is shown to have desirable distributional implications. 2016-08-25T19:47:48Z 2016-08-25T19:47:48Z 2016-06-01 Report Rapport Informe http://documents.worldbank.org/curated/en/2016/07/26595743/smart-subsidy-welfare-distributional-implications-malawi’s-fisp https://hdl.handle.net/10986/24946 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain World Bank, Washington, DC |
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English en_US |
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Farmer Input Subsidy Program FISP agricultural productivity poor farmers fertilizers income distribution Farmer Input Subsidy Program FISP agricultural productivity poor farmers fertilizers income distribution |
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Farmer Input Subsidy Program FISP agricultural productivity poor farmers fertilizers income distribution Farmer Input Subsidy Program FISP agricultural productivity poor farmers fertilizers income distribution Jacoby, Hanan Smart Subsidy? |
description |
It is often argued that subsidizing fertilizer and other inputs is desirable both to boost agricultural
production and to help poor farmers. This analysis of Malawi’s huge Farmer Input Subsidy Program
highlights a tension between these two objectives: The more FISP increases fertilizer use and thereby
raises output, the greater the distortion and hence the lower the welfare gains from the program.
Indeed, the empirical results indicate that up to 59% of every Kwacha spent on the FISP is wasted, in the
sense that the fertilizer is not sufficiently valued by the beneficiaries. Cashing out the program is shown
to have desirable distributional implications. |
format |
Report |
topic_facet |
Farmer Input Subsidy Program FISP agricultural productivity poor farmers fertilizers income distribution |
author |
Jacoby, Hanan |
author_facet |
Jacoby, Hanan |
author_sort |
Jacoby, Hanan |
title |
Smart Subsidy? |
title_short |
Smart Subsidy? |
title_full |
Smart Subsidy? |
title_fullStr |
Smart Subsidy? |
title_full_unstemmed |
Smart Subsidy? |
title_sort |
smart subsidy? |
publisher |
World Bank, Washington, DC |
publishDate |
2016-06-01 |
url |
http://documents.worldbank.org/curated/en/2016/07/26595743/smart-subsidy-welfare-distributional-implications-malawi’s-fisp https://hdl.handle.net/10986/24946 |
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AT jacobyhanan smartsubsidy AT jacobyhanan welfareanddistributionalimplicationsofmalawisfisp |
_version_ |
1807160257085964288 |