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Distributional Welfare Implications of an Irrigation Water Subsidy

Author

Listed:
  • William E. Foster
  • Linda S. Calvin
  • Grace M. Johns
  • Patricia Rottschaefer

Abstract

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.

Suggested Citation

  • William E. Foster & Linda S. Calvin & Grace M. Johns & Patricia Rottschaefer, 1986. "Distributional Welfare Implications of an Irrigation Water Subsidy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(4), pages 778-786.
  • Handle: RePEc:oup:ajagec:v:68:y:1986:i:4:p:778-786.
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    File URL: http://hdl.handle.net/10.2307/1242124
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    Cited by:

    1. Skaggs, Rhonda K. & Falk, Constance L., 1997. "Market and Welfare Effects of Livestock Feed Subsidies," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35944, Western Agricultural Economics Association.
    2. Wasantha Athukorala & Clevo Wilson, 2017. "Distributional impacts of irrigation-induced agricultural development in a semi-subsistence economy: new evidence," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(1), pages 59-75, January.

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