Evaluating fertilizer subsidies in developing countries

However, the recent increase in international fertilizer prices threatens to limit constant and widespread adoption of soil enrichment techniques. After a brief historical background, this report evaluates such subsidies on the basis of economic factors influencing demand and use. Policy alternatives and tradeoffs are discussed. While no ultimate conclusions are provided, the author does suggest that long-term subsidies may be expensive and ultimately detrimental. Possible alternatives include: short-term subsidies, higher food prices that reflect increased fertilizer costs, and a channeling of subsidy money to research programs devoted to seeking other solutions to the fertilizer problem. (Submitter abstract)