NDLI: Welfare effects of alternative targeted food subsidy programs in Iran

Content Provider	Springer Nature Link
Author	Esmaeili, Abdoulkarim Karami, Ayatollah Najafi, Bahaeddin
Copyright Year	2013
Abstract	In many developing countries, consumer food subsidies are major parts of social safety net programs. The primary objective of these programs is to generate a sustained decrease in poverty in these countries. But, due to improper targeting, a large proportion of these food subsidies are “leaked” to high-income groups. Using a computable general equilibrium (CGE) model, the effects of alternative food subsidy reforms on production, foreign trade, households’ welfare and government expenditure in Iran was investigated. These were commodity targeting and cash transfer targeting of the food subsidy for needy groups. Replacing the existing food subsidy program with one targeted to foods consumed heavily in low income households would reduce government expenditure by 4.4 %, increase agricultural exports, reduce non-agricultural exports, and have a negative impact on consumer welfare for all urban consumers, and for all rural consumers except those in the poorest quintile. Replacing the existing program with a cash transfer targeted to poor households would reduce government expenditure by 3.1 %.
Starting Page	451
Ending Page	456
Page Count	6
File Format	PDF
ISSN	18764517
Journal	Food Security
Volume Number	5
Issue Number	3
e-ISSN	18764525
Language	English
Publisher	Springer Netherlands
Publisher Date	2013-04-26
Publisher Place	Dordrecht
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Food subsidy Food security Iran CGE model Targeting Welfare Agriculture Food Science Social Policy Plant Sciences Environment Social Sciences
Content Type	Text
Resource Type	Article
Subject	Development Food Science Agronomy and Crop Science

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
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