IDEAS home Printed from https://ideas.repec.org/a/eme/caerpp/v6y2014i3p433-451.html
   My bibliography  Save this article

Fertilizer industry subsidies in China: who are the beneficiaries?

Author

Listed:
  • Sheng Li
  • Yaoqi Zhang
  • Denis Nadolnyak
  • John David Wesley
  • Yifei Zhang

Abstract

Purpose - – Since 2004, subsidies increased by 670 percent in the Chinese fertilizer industry to reduce the farmer's burden. The purpose of this paper is to assess whether subsidies benefit the target groups, the fertilizer subsidy distribution pattern and benefit allocation pattern among fertilizer producers and other sectors were investigated. Design/methodology/approach - – The Muth model is extended to evaluate the impacts of a subsidy on multi-stage markets. Findings - – It is found that the total benefits from the policy are about RMB 7.7 billion yuans. The fertilizer suppliers gain about RMB 51 billion yuans from the favorable policy with mean subsidy incidence 0.8 and capturing about 70 percent of total surplus. Social implications - – The results suggest that transferring parts of subsidies to the non-fertilizer sectors could be considered an efficient way to redistribute welfare indifferent sectors. Originality/value - – This study first use the equilibrium displacement model to quantity the distribution of fertilizer subsidy in a vertical market in China.

Suggested Citation

  • Sheng Li & Yaoqi Zhang & Denis Nadolnyak & John David Wesley & Yifei Zhang, 2014. "Fertilizer industry subsidies in China: who are the beneficiaries?," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 6(3), pages 433-451, August.
    • Handle: RePEc:eme:caerpp:v:6:y:2014:i:3:p:433-451
    DOI: 10.1108/CAER-12-2012-0134
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/CAER-12-2012-0134/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/CAER-12-2012-0134/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/CAER-12-2012-0134?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Ali, Mubarik & Ahmed, Faryal & Channa, Hira & Davies, Stephen, 2015. "Equilibrium Displacement Model for Fertilizer Sector of Pakistan," 2015 Conference, August 9-14, 2015, Milan, Italy 210943, International Association of Agricultural Economists.
    2. Scholz, Roland W. & Wellmer, Friedrich-Wilhelm, 2015. "Losses and use efficiencies along the phosphorus cycle – Part 2: Understanding the concept of efficiency," Resources, Conservation & Recycling, Elsevier, vol. 105(PB), pages 259-274.
    3. Pingping Fang & David Abler & Guanghua Lin & Ali Sher & Quan Quan, 2021. "Substituting Organic Fertilizer for Chemical Fertilizer: Evidence from Apple Growers in China," Land, MDPI, vol. 10(8), pages 1-24, August.
    4. Mew, Michael & Steiner, Gerald & Haneklaus, Nils & Geissler, Bernhard, 2023. "Phosphate price peaks and negotiations – Part 2: The 2008 peak and implications for the future," Resources Policy, Elsevier, vol. 83(C).
    5. Ali, Mubarik & Ahmed, Faryal & Channa, Hira & Davies, Stephen, 2015. "The Role of Regulations in the Fertilizer Sector of Pakistan," 2015 Conference, August 9-14, 2015, Milan, Italy 211559, International Association of Agricultural Economists.

    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:eme:caerpp:v:6:y:2014:i:3:p:433-451. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Emerald Support (email available below). General contact details of provider: .

    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.