Distributional impacts of the rice tariffication in the Philippines

In March 2019, the government of the Philippines promulgated a bill called the Rice Tariffication Law (RTL). It has dramatically changed the policy landscape in the rice sector and generated heated debates on how it would affect food security and poverty. This study explores the welfare effects of t...

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Autores principales: Balié, Jean, Minot, Nicholas, Valera, Harold Glenn
Formato: Journal Article
Lenguaje:Inglés
Publicado: Economic Society of Australia 2021
Materias:
Acceso en línea:https://hdl.handle.net/10568/142476
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author Balié, Jean
Minot, Nicholas
Valera, Harold Glenn
author_browse Balié, Jean
Minot, Nicholas
Valera, Harold Glenn
author_facet Balié, Jean
Minot, Nicholas
Valera, Harold Glenn
author_sort Balié, Jean
collection Repository of Agricultural Research Outputs (CGSpace)
description In March 2019, the government of the Philippines promulgated a bill called the Rice Tariffication Law (RTL). It has dramatically changed the policy landscape in the rice sector and generated heated debates on how it would affect food security and poverty. This study explores the welfare effects of this reform across different types of households. We rely on the IRRI Global Rice Model to simulate the domestic price effects of the reform (Balié and Valera, 2020) and the Family Income and Expenditure Survey (FIES) to study the welfare impact of these price changes. Our results show that the RTL reduces consumer and producer rice prices, which affects households on the production and the consumption sides. Because a large majority of households are net buyers of rice and the policy reform reduces rice prices, most households benefit from the reform. Overall, the effects of the reform on poverty are beneficial. The poorest quintiles are positively affected, while the richest quintiles are unaffected or slightly worse-off. Spatially, the poorest regions also benefit the most. However, the rice growers who are net sellers are negatively impacted. The government should seek to mitigate the negative effects on non-competitive rice growers. Investments in public goods and services are a promising option to ease the emergence of on-farm and off-farm businesses as more profitable alternatives to rice production.
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spelling CGSpace1424762024-10-25T07:55:40Z Distributional impacts of the rice tariffication in the Philippines Balié, Jean Minot, Nicholas Valera, Harold Glenn profitability policies poverty alleviation regional analysis rice welfare price volatility prices tariffs In March 2019, the government of the Philippines promulgated a bill called the Rice Tariffication Law (RTL). It has dramatically changed the policy landscape in the rice sector and generated heated debates on how it would affect food security and poverty. This study explores the welfare effects of this reform across different types of households. We rely on the IRRI Global Rice Model to simulate the domestic price effects of the reform (Balié and Valera, 2020) and the Family Income and Expenditure Survey (FIES) to study the welfare impact of these price changes. Our results show that the RTL reduces consumer and producer rice prices, which affects households on the production and the consumption sides. Because a large majority of households are net buyers of rice and the policy reform reduces rice prices, most households benefit from the reform. Overall, the effects of the reform on poverty are beneficial. The poorest quintiles are positively affected, while the richest quintiles are unaffected or slightly worse-off. Spatially, the poorest regions also benefit the most. However, the rice growers who are net sellers are negatively impacted. The government should seek to mitigate the negative effects on non-competitive rice growers. Investments in public goods and services are a promising option to ease the emergence of on-farm and off-farm businesses as more profitable alternatives to rice production. 2021-03-01 2024-05-22T12:10:33Z 2024-05-22T12:10:33Z Journal Article https://hdl.handle.net/10568/142476 en https://doi.org/10.2499/p15738coll2.133994 Open Access Economic Society of Australia Balié, Jean; Minot, Nicholas; and Valera, Harold Glenn. 2021. Distributional impacts of the rice tariffication in the Philippines. Economic Analysis and 69(March 2021): 289-306. https://doi.org/10.1016/j.eap.2020.12.005
spellingShingle profitability
policies
poverty alleviation
regional analysis
rice
welfare
price volatility
prices
tariffs
Balié, Jean
Minot, Nicholas
Valera, Harold Glenn
Distributional impacts of the rice tariffication in the Philippines
title Distributional impacts of the rice tariffication in the Philippines
title_full Distributional impacts of the rice tariffication in the Philippines
title_fullStr Distributional impacts of the rice tariffication in the Philippines
title_full_unstemmed Distributional impacts of the rice tariffication in the Philippines
title_short Distributional impacts of the rice tariffication in the Philippines
title_sort distributional impacts of the rice tariffication in the philippines
topic profitability
policies
poverty alleviation
regional analysis
rice
welfare
price volatility
prices
tariffs
url https://hdl.handle.net/10568/142476
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