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Assessing Socio-Economic Impacts of Agricultural Subsidies: A Case Study from Bhutan

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  • Sonam Wangyel Wang

    (Ojeong Eco-Resilience Institute (OJERI), Division of Environmental Science and Ecological Engineering, College of Life Sciences, Korea University, Seoul 02841, Korea
    Bhutan Institute of Himalayan Studies, Wang Simu, P.O. Box 2049, Thimphu, Bhutan)

  • Belay Manjur

    (Division of Environmental Science and Ecological Engineering, College of Life Sciences, Korea University, Seoul 02841, Korea)

  • Jeong-Gyu Kim

    (Ojeong Eco-Resilience Institute (OJERI), Division of Environmental Science and Ecological Engineering, College of Life Sciences, Korea University, Seoul 02841, Korea)

  • Woo-Kyun Lee

    (Division of Environmental Science and Ecological Engineering, College of Life Sciences, Korea University, Seoul 02841, Korea)

Abstract

As an agrarian nation, Bhutan’s agricultural policies prioritize agricultural subsidies to boost agricultural production, rural incomes, improve food security, and reduce income poverty, especially among the rural poor. However, the effectiveness and efficiency of such policy interventions remains unknown. Based on semi-structured interviews with heads of households from six blocks representing two districts, expert consultation with agricultural policymakers and extension agents, we attempted to evaluate the socio-economic impacts of agricultural subsidy programs including co-payments. The study found that while over 90% of the households received at least one form of subsidy, except for agricultural machineries and piglets, the non-poor population has greater access to the subsidies compared to the poor. For instance, only 35% of the poor received seed and sapling subsidies compared to 52% seeds and 39% sapling subsidies received by the non-poor population. Furthermore, none of the poor received Jersey cow or biogas subsidies due to their inability to co-pay. Additionally, the agriculture machinery subsidy was found to be counterproductive to the lower income groups (

Suggested Citation

  • Sonam Wangyel Wang & Belay Manjur & Jeong-Gyu Kim & Woo-Kyun Lee, 2019. "Assessing Socio-Economic Impacts of Agricultural Subsidies: A Case Study from Bhutan," Sustainability, MDPI, vol. 11(12), pages 1-12, June.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:12:p:3266-:d:239452
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    Cited by:

    1. Kinley Dorji & Judith Miller & Shubiao Wu, 2023. "Agricultural Interventions in the Bhutanese Context for Sustainability—A Documentary Analysis Using a Thematic Conceptual Framework," Sustainability, MDPI, vol. 15(5), pages 1-17, February.
    2. Ivana Kravčáková Vozárová & Rastislav Kotulič & Roman Vavrek, 2020. "Assessing Impacts of CAP Subsidies on Financial Performance of Enterprises in Slovak Republic," Sustainability, MDPI, vol. 12(3), pages 1-18, January.
    3. Jagoda Zmyślona & Arkadiusz Sadowski & Krzysztof Piotr Pawłowski, 2024. "How Can Overinvestment in Farms Affect Their Technical Efficiency? A Case Study from Poland," Agriculture, MDPI, vol. 14(10), pages 1-16, October.
    4. Abdulaleem Isiaka & Alexander Mihailov & Giovanni Razzi, 2022. "Reallocating Government Spending to Reduce Income Inequality: Panel Data Evidence from the Middle-Income Countries," Economics Discussion Papers em-dp2022-08, Department of Economics, University of Reading.

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