Households Welfare Impact of Fertilizer Policy Reform in Kenya: a macro-micro simulation approach

HASAN DUDU; ALFREDO MAINAR CAUSAPÉ; PIERRE BOULANGER; EMANUELE FERRARI; MARIA PRISCILA RAMOS

Sevilla

Seminario; Seminario Cientifico sobre "Economics of Agriculture"; 2018

European Commission JRC IPTS D4

This report shed some light on welfare impacts from different scenarios of a fertilizer policyreform on Kenyan households, i.e. (1) a productivity improvement, (2) production subsidies, (3)national market protection versus (4) a market access improvement through lower tariffs andtransport costs, and finally (5) a greater efficiency due to better techniques in this sector. Thesescenarios affect differently each household in Kenya depending on their consumption basketsand sources of income. Thus, using the changes in goods and factors prices from the CGEsimulations (using Stage-dev model) we have run and measure the welfare impact of thosescenarios at the micro level. We decompose the overall welfare impact in consumption andincome effects and we discuss the results for each region of the country: two cities (Nairobi andMombasa) and six agro-ecological regions (Arid, Semi-Arid from North and South, the Coastand the High Rainfall region).