New Journal Paper on economics of farm input subsidies in Africa

The paper "Economics of Farm Input Subsidies in Africa" written by Stein T. Holden has been published in the Annual Review of Resource Economics.

New Journal Paper on economics of farm input subsidies in Africa

The paper is published as a New Journal Paper and can be downloaded here.

Abstract of the paper
Fertilizer and other input subsidies have been prominent components of agricultural policies in many Asian and African countries since the 1960s. Their economic and political rationale is scrutinized with emphasis on the second generation of targeted input subsidy programs that were scaled up in Sub-Saharan Africa after 2005. The extent to which they fulfill the goal of being market smart is assessed after inspecting the potential for such subsidies in Sub-Saharan Africa.

The new fertilizer subsidy programs do not live up the market-smart principles and suffer from severe design and implementation failures. While a clear exit strategy was one of the key principles, this has been neglected, with the result that most current programs are more sticky than smart. They have only partially achieved the intended impacts and have resulted in a number of unintended negative impacts. Subsidy program redesign should start from a pilot stage testing basic mechanisms.

Published 15. March 2019 - 8:42 - Updated 15. March 2019 - 8:45

Norwegian University of Life Sciences (NMBU)

Contact us

Contact info

Click above to find
specific contact info.

Visit us