Consequences of a food security strategy for economic welfare, income distribution and land degradation: the Philippine case


At the level of the aggregate economy, the price support reduces real GDP (-0.4%) and average real household consumption expenditures (-1.5%) (Figure 5). It has a progressive impact on distribution (Figure 6). However, all real household incomes decline: the policy enables poor households to gain a larger slice of a smaller overall pie. Finally, by raising returns to grains, the price support draws more land into production of these relatively erosive crops, promoting a more rapid rate of agricultural land degradation (Figure 7). The environmental impact of the price support is most strongly seen in Mindanao, the Philippines' major corn-growing region.

Source InstitutionWorld Bank
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Page Count35
Place of PublicationUniversity of Wisconsin-Madison
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