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Distributional Welfare Implications of an Irrigation Water Subsidy
Author(s) -
Foster William E.,
Calvin Linda S.,
Johns Grace M.,
Rottschaefer Patricia
Publication year - 1986
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242124
Subject(s) - subsidy , welfare , production (economics) , irrigation , agricultural economics , economics , natural resource economics , order (exchange) , business , microeconomics , ecology , finance , market economy , biology
The distributional welfare implications of a subsidy for irrigation water for California rice producers are analyzed. A more general equilibrium approach than that used in previous studies is taken in order to determine the effects of subsidy on consumers, subsidized producers, and unsubsidized producers. The two important policy conclusions of the results are that unsubsidized producers bear part of the cost of a subsidy through lower prices, and that consumers (taxpayers) may gain by sponsoring increased production through a selective subsidy.