The cost of managing with less: cutting water subsidies and supplies in Egypt's agriculture

cg.coverage.countryEgypt
cg.coverage.iso3166-alpha2EG
cg.coverage.regionNorthern Africa
cg.coverage.regionMiddle East
cg.coverage.regionAfrica
cg.identifier.projectIFPRI - Archive
cg.placeGreenwich, CTen
cg.reviewStatusInternal Reviewen
dc.contributor.authorLofgren, Hansen
dc.date.accessioned2025-01-29T12:58:26Zen
dc.date.available2025-01-29T12:58:26Zen
dc.identifier.urihttps://hdl.handle.net/10568/171606
dc.titleThe cost of managing with less: cutting water subsidies and supplies in Egypt's agricultureen
dcterms.abstractUsing a mathematical-programming agricultural-sector model of Egypt, this paper analyzes mechanisms for allocating scarce water and for charging the farmers the Operation and Management (O&M) costs of irrigation and drainage, currently covered by the government. The effects of cost recovery are negative but minor. A crop charge (based on crop water consumption per land unit) and a volumetric charge both discourage consumption. The former is easier to implement but does not stimulate water-saving technical change. A 15% cut in agricultural water supplies (permitting a 79% increase in non-agricultural use) raise farmer incomes and has moderate negative effects on consumer welfare and production; a 30% cut causes disproportionately larger negative effects, including large increases in the agricultural trade deficit. Efficient market-based allocations yield higher production and avoid unequal water access, associated with the inefficient alternative of forcing half the farmers to cut their use. However, water sales to farmers at prices reducing demand by 15-30% lead to 20-35% declines in farmer incomes. This suggests the need to explore reforms endowing the farmers with tradable water rights.en
dcterms.accessRightsLimited Access
dcterms.bibliographicCitationLofgren, Hans. 1996. The cost of managing with less: cutting water subsidies and supplies in Egypt's agriculture. In Karen Pfeifer, ed. Research in Middle East Economics. Volume 1. pp. 83-107.en
dcterms.isPartOfResearch in Middle East Economicsen
dcterms.issued1996
dcterms.languageen
dcterms.publisherJAI Press, Inc.en
dcterms.relationhttps://hdl.handle.net/10568/157088en
dcterms.replaceshttps://ebrary.ifpri.org/digital/collection/p15738coll5/id/3287en
dcterms.subjectwateren
dcterms.subjectpricesen
dcterms.subjectwater rightsen
dcterms.subjectwater supplyen
dcterms.typeBook Chapter

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