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Simulating the effects of tax exemptions on fertiliser use in Benin by linking biophysical and economic models

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  • Kuhn, Arnim
  • Gaiser, Thomas
  • Gandonou, Esaïe
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    Abstract

    The sluggish increase in the area productivity of staple crops is a major factor causing increased dependence of African countries on food imports. The increased use of mineral fertiliser may dramatically improve the food balance of many countries and result in lower food prices, higher food supply and consumption, and improved food security and nutritional status. In Benin, West Africa, political measures to improve farmers' access to fertiliser are biased in favour of cotton production. This article simulates the impact of universal tax exemptions for fertiliser use on crop yields, food balances, and the use of land resources for the most important staple crops in Benin using a crop growth model and an agricultural sector model. The simulation results indicate that tax exemptions on fertiliser use could have positive effects on physical productivity and would increase food security until 2025 as compared to a baseline scenario. At the same time, the pressure on land resources would not be aggravated, so that better access to fertiliser may help to curb excessive cropland expansion in Benin.

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    File URL: http://www.sciencedirect.com/science/article/B6T3W-509Y4F2-1/2/ff7b70cd3bb7b406caae18f0342737f2
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    Bibliographic Info

    Article provided by Elsevier in its journal Agricultural Systems.

    Volume (Year): 103 (2010)
    Issue (Month): 8 (October)
    Pages: 509-520

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    Handle: RePEc:eee:agisys:v:103:y:2010:i:8:p:509-520

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    Web page: http://www.elsevier.com/locate/agsy

    Related research

    Keywords: Green revolution Crop modelling Agricultural sector model Input subsidies;

    References

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    1. Barbier, Bruno & Bergeron, Gilles, 2001. "Natural resource management in the hillsides of Honduras: bioeconomic modeling at the micro-watershed level," Research reports 123, International Food Policy Research Institute (IFPRI).
    2. Barrett, Christopher B., 2003. "Rural Poverty Dynamics: Development Policy Implications," Working Papers 127243, Cornell University, Department of Applied Economics and Management.
    3. B.N. Okumu & N. Russell & M.A. Jabbar & D. Colman & M A Mohamed Saleem & J. Pender, 2004. "Economic Impacts of Technology, Population Growth And Soil Erosion At Watershed Level: The Case Of the Ginchi in Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 503-523.
    4. Peter Timmer, 2005. "Agriculture and Pro-Poor Growth: An Asian Perspective," Working Papers 63, Center for Global Development.
    5. Minot, Nicholas & Benson, Todd, 2009. "Fertilizer subsidies in Africa: Are vouchers the answer?," Issue briefs 60, International Food Policy Research Institute (IFPRI).
    6. Yoshito Takasaki, 2006. "A model of shifting cultivation: can soil conservation reduce deforestation?," Agricultural Economics, International Association of Agricultural Economists, vol. 35(2), pages 193-201, 09.
    7. Yanggen, David & Kelly, Valerie A. & Reardon, Thomas & Naseem, Anwar, 1998. "Incentives for Fertilizer Use in Sub-Saharan Africa: A Review of Empirical Evidence on Fertilizer Response and Profitability," Food Security International Development Working Papers 54677, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Janssen, Sander & van Ittersum, Martin K., 2007. "Assessing farm innovations and responses to policies: A review of bio-economic farm models," Agricultural Systems, Elsevier, vol. 94(3), pages 622-636, June.
    9. Holden, Stein & Shiferaw, Bekele, 2004. "Land degradation, drought and food security in a less-favoured area in the Ethiopian highlands: a bio-economic model with market imperfections," Agricultural Economics, Blackwell, vol. 30(1), pages 31-49, January.
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    Cited by:
    1. Folberth, Christian & Yang, Hong & Gaiser, Thomas & Abbaspour, Karim C. & Schulin, Rainer, 2013. "Modeling maize yield responses to improvement in nutrient, water and cultivar inputs in sub-Saharan Africa," Agricultural Systems, Elsevier, vol. 119(C), pages 22-34.

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