[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/p/unp/sdgspp/201606.html
   My bibliography  Save this paper

Fertilizer Subsidies and Food Self-sufficiency in Indonesia

Author

Listed:
  • Peter Warr

    (Australian National University)

  • Arief Anshory Yusuf

    (Department of Economics, Padjadjaran University)

Abstract
Indonesia is a net importer of almost all of its staple foods. National self-sufficiency in food, especially the mainstaple, rice, is a core objective of economic policy. Poverty reduction is also a core policy objective. Since the 1970s, Indonesia has used agricultural input subsidies, especially on fertilizer, to stimulate agricultural production, largely in pursuit of its self-sufficiency goals. Recently, it has alsoused output protection, especially in rice, for the same purpose. This paper utilizes a multi-sectoral, multi-household general equilibrium model of the Indonesian economy to study the trade-offs between the goals of self-sufficiency and poverty reduction when two alternative means are used toachieve them: a fertilizer subsidy, on the one hand, and output protection, on the other. It does this by analyzing the aggregate and distributional effects of these two sets of policies and by comparing their effects with non-intervention. The analysis shows that, in terms of its effects on poverty, a fertilizer subsidy can be a more effective instrument for achieving the goal of rice self-sufficiency than final product import restrictions.

Suggested Citation

  • Peter Warr & Arief Anshory Yusuf, 2016. "Fertilizer Subsidies and Food Self-sufficiency in Indonesia," UNPAD SDGs Working Paper Series 201606, Center for Sustainable Development Goals Studies, Universitas Padjadjaran, revised Jun 2016.
  • Handle: RePEc:unp:sdgspp:201606
    as

    Download full text from publisher

    File URL: http://sdgcenter.unpad.ac.id/paper/201606.pdf
    File Function: First version, 2016
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Peter Warr, 2008. "World food prices and poverty incidence in a food exporting country: a multihousehold general equilibrium analysis for Thailand," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 525-537, November.
    2. Shahidur Rashid & Paul A. Dorosh & Mehrab Malek & Solomon Lemma, 2013. "Modern input promotion in sub-Saharan Africa: insights from Asian green revolution," Agricultural Economics, International Association of Agricultural Economists, vol. 44(6), pages 705-721, November.
    3. Peter Warr, 2011. "Food Security vs. Food Self-Sufficiency: The Indonesian Case," Departmental Working Papers 2011-04, The Australian National University, Arndt-Corden Department of Economics.
    4. Arief Anshory Yusuf, 2006. "Constructing Indonesian Social Accounting Matrix for Distributional Analysis in the CGE Modelling Framework," Working Papers in Economics and Development Studies (WoPEDS) 200604, Department of Economics, Padjadjaran University, revised Nov 2006.
    5. Soimakallio, Sampo & Saikku, Laura, 2012. "CO2 emissions attributed to annual average electricity consumption in OECD (the Organisation for Economic Co-operation and Development) countries," Energy, Elsevier, vol. 38(1), pages 13-20.
    6. Warr, Peter G., 2005. "Food policy and poverty in Indonesia: a general equilibrium analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(4), pages 1-23.
    7. Iwan J. Azis, 2000. "Simulating economy-wide models to capture the transition from financial crisis to social crisis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(2), pages 251-278.
    8. François Bourguignon & Anne-Sophie Robilliard & Sherman Robinson, 2003. "Representative versus real households in the macro-economic modeling of inequality," Working Papers DT/2003/10, DIAL (Développement, Institutions et Mondialisation).
    9. Warr, Peter G., 2005. "Food Policy And Poverty: A General Equilibrium Analysis For Indonesia," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 139296, Australian Agricultural and Resource Economics Society.
    10. Osorio, Camilo Gomez & Abriningrum, Dwi Endah & Armas, Enrique Blanco & Firdaus, Muhammad, 2011. "Who is benefiting from fertilizer subsidies in Indonesia ?," Policy Research Working Paper Series 5758, The World Bank.
    11. Peter Warr & Arief Anshory Yusuf, 2014. "World food prices and poverty in Indonesia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(1), pages 1-21, January.
    12. Cororaton, Caesar B. & Cockburn, John, 2004. "Trade Reform and Poverty in the Philippines: A Computable General Equilibrium Microsimulation Analysis," Conference papers 331176, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999. "Poverty Analysis Within a General Equilibrium Framework," Cahiers de recherche 9909, Université Laval - Département d'économique.
    14. Rina Oktaviani & Dedi Budiman Hakim & Hermanto Siregar & Sahara Sahara, 2007. "Impact of a Lower Oil Subsidy on Indonesian Macroeconomic Performance, Agricultural Sector and Poverty Incidences: a Recursive Dynamic Computable General Equilibrium Analysis," Working Papers MPIA 2007-28, PEP-MPIA.
    15. Robilliard, Anne-Sophie & Robinson, Sherman, 2005. "The social impact of a WTO agreement in Indonesia," Policy Research Working Paper Series 3747, The World Bank.
    16. repec:dau:papers:123456789/5130 is not listed on IDEAS
    17. Mark Horridge, 2000. "ORANI-G: A General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers op-93, Victoria University, Centre of Policy Studies/IMPACT Centre.
    18. George Fane & Peter Warr, 2008. "Agricultural Protection In Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 44(1), pages 133-150.
    19. T.S. Jayne & Shahidur Rashid, 2013. "Input subsidy programs in sub-Saharan Africa: a synthesis of recent evidence," Agricultural Economics, International Association of Agricultural Economists, vol. 44(6), pages 547-562, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Akhter Ali & Dil Bahadur Rahut & Muhammad Imtiaz, 2019. "Affordability Linked with Subsidy: Impact of Fertilizers Subsidy on Household Welfare in Pakistan," Sustainability, MDPI, vol. 11(19), pages 1-12, September.
    2. Arief Anshory Yusuf & Peter Warr, 2018. "Anti-globalisation, poverty and inequality in Indonesia," Departmental Working Papers 2018-03, The Australian National University, Arndt-Corden Department of Economics.
    3. Yayat Sukayat & Iwan Setiawan & Ukas Suharfaputra & Ganjar Kurnia, 2023. "Determining Factors for Farmers to Engage in Sustainable Agricultural Practices: A Case from Indonesia," Sustainability, MDPI, vol. 15(13), pages 1-14, July.
    4. Zhong, Ling & Nie, Jiajia & Yue, Xiaohang & Jin, Minyue, 2023. "Optimal design of agricultural insurance subsidies under the risk of extreme weather," International Journal of Production Economics, Elsevier, vol. 263(C).
    5. Nguyen, Huy, 2014. "Crop diversification, economic performance and household’s behaviours Evidence from Vietnam," MPRA Paper 59090, University Library of Munich, Germany.
    6. Al Zahra, Windi & van Middelaar, Corina E. & Oosting, Simon J. & de Boer, Imke J.M., 2024. "Nutrient imbalances of smallholder dairy farming systems in Indonesia: The relevance of manure management," Agricultural Systems, Elsevier, vol. 218(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arief Anshory Yusuf & Budy P. Resosudarmo, 2007. "On the Distributional Effect of Carbon Tax in Developing Countries: The Case of Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 200705, Department of Economics, Padjadjaran University, revised Aug 2007.
    2. Yusuf, Arief Anshory & Resosudarmo, Budy P., 2007. "Searching for Equitable Energy Price Reform for Indonesia," MPRA Paper 1946, University Library of Munich, Germany.
    3. Peter Warr & Arief Anshory Yusuf, 2009. "International food prices and poverty in Indonesia," Departmental Working Papers 2009-19, The Australian National University, Arndt-Corden Department of Economics.
    4. Arief Anshory Yusuf, 2008. "INDONESIA-E3: An Indonesian Applied General Equilibrium Model for Analyzing the Economy, Equity, and the Environment," Working Papers in Economics and Development Studies (WoPEDS) 200804, Department of Economics, Padjadjaran University, revised Sep 2008.
    5. Peter Warr & Arief Anshory Yusuf, 2014. "World food prices and poverty in Indonesia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(1), pages 1-21, January.
    6. Arief Anshory Yusuf, 2006. "Constructing Indonesian Social Accounting Matrix for Distributional Analysis in the CGE Modelling Framework," Working Papers in Economics and Development Studies (WoPEDS) 200604, Department of Economics, Padjadjaran University, revised Nov 2006.
    7. Ditya Agung Nurdianto, 2016. "Economic Impacts of a Carbon Tax in an Integrated ASEAN," EEPSEA Special and Technical Paper tp201604t5, Economy and Environment Program for Southeast Asia (EEPSEA), revised Apr 2016.
    8. Warr, Peter & Yusuf, Arief Anshory, 2011. "Reducing Indonesia’s deforestation-based greenhouse gas emissions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(3), pages 1-25, September.
    9. Dawe, David & Maltsoglou, Irini, 2014. "Marketing margins and the welfare analysis of food price shocks," Food Policy, Elsevier, vol. 46(C), pages 50-55.
    10. Arief Anshory Yusuf, 2014. "International Commodity Prices and Inequality in Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201409, Department of Economics, Padjadjaran University, revised Jun 2014.
    11. Pham Van Ha & Hoa Thi Minh Nguyen & Tom Kompas & Tuong Nhu Che & Bui Trinh, 2015. "Rice Production, Trade and the Poor: Regional Effects of Rice Export Policy on Households in Vietnam," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(2), pages 280-307, June.
    12. Yamauchi, Futoshi & Larson, Donald F., 2019. "Long-term impacts of an unanticipated spike in food prices on child growth in Indonesia," World Development, Elsevier, vol. 113(C), pages 330-343.
    13. Warr, Peter, 2014. "Agricultural liberalization, poverty and inequality: Indonesia and Thailand," Journal of Asian Economics, Elsevier, vol. 35(C), pages 92-106.
    14. Thomas W. Hertel & Jeffrey J. Reimer, 2006. "Predicting the Poverty Impacts of Trade Reform," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 2, May.
    15. Nouve, Kofi & Wodon, Quentin, 2008. "Impact of rising rice prices and policy responses in Mali : simulations with a dynamic CGE model," Policy Research Working Paper Series 4739, The World Bank.
    16. Arief Anshory Yusuf & Budy P. Resosudarmo, 2007. "Searching for Equitable Energy Pricing Reform for Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 200701, Department of Economics, Padjadjaran University, revised Dec 2007.
    17. Peter Warr, 2014. "Enhancing food security: agricultural productivity, international trade and poverty reduction," Chapters, in: Raghbendra Jha & Raghav Gaiha & Anil B. Deolalikar (ed.), Handbook on Food, chapter 14, pages 353-380, Edward Elgar Publishing.
    18. Warr, Peter G., 2009. "Agricultural Protection and Poverty in Indonesia: A General Equilibrium Analysis," Agricultural Distortions Working Paper Series 52788, World Bank.
    19. Arief Yusuf & Budy Resosudarmo, 2015. "On the distributional impact of a carbon tax in developing countries: the case of Indonesia," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(1), pages 131-156, January.
    20. David Dawe, 2014. "Transmission of global food prices, supply response and impacts on the poor," Chapters, in: Raghbendra Jha & Raghav Gaiha & Anil B. Deolalikar (ed.), Handbook on Food, chapter 5, pages 100-121, Edward Elgar Publishing.

    More about this item

    Keywords

    Indonesia; Fertilizer subsidies; Food self-sufficiency;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unp:sdgspp:201606. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Arief Anshory Yusuf (email available below). General contact details of provider: https://edirc.repec.org/data/sdgupid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.