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Irrigation subsidy policy in Chile: lessons from the allocation, uneven distribution and water resources implications

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  • Cristian Jordan
  • Guillermo Donoso
  • Stijn Speelman

Abstract

Globally irrigation subsidies are utilized to boost modernization and increase irrigation efficiency. This paper examines the effects of the irrigation subsidy programme in Chile by reviewing 32 years of allocations and exploring the drivers and consequences of the subsidy programme with a clear market approach based on competition and a state risk-free strategy. Our analysis reveals that, despite the flexibility in targeting, the results indicate an uneven allocation to smallholders’ detriment, a state inability to identify farmers’ needs, market concentration and a bias towards agricultural expansion. As long as the programme remains unaltered, it will threaten agriculture and water resources’ sustainability.

Suggested Citation

  • Cristian Jordan & Guillermo Donoso & Stijn Speelman, 2023. "Irrigation subsidy policy in Chile: lessons from the allocation, uneven distribution and water resources implications," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 39(1), pages 133-154, January.
    • Handle: RePEc:taf:cijwxx:v:39:y:2023:i:1:p:133-154
    DOI: 10.1080/07900627.2021.1965964
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