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Water policy and poverty reduction in rural area: a comparative economywide analysis for Morocco and Tunisia

Chokri Thabet, Ali Chebil and Aymen Frija

No 183088, 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia from European Association of Agricultural Economists

Abstract: The main objective of this study is to compare the impacts of alternative water policy management scenarios on Tunisia and Morocco. A dynamic water CGE-model has been implemented and used to explore the likely effects of water economic instruments. Results show that the low cost of water has encouraged farmers to adopt more water-intensive activities. Reducing public subsidies on water will affect directly farm income which is expected to drop by about 20 per cent in the short and medium terms. However, the reduction of farmers’ incomes will be largely compensated by the saving in public expenditures but also in a better and more efficient use of water resources.

Keywords: Food Security and Poverty; Public Economics (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-ara and nep-cmp
Date: 2014-08
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