Agricultural and Wind Energy Subsidies: An Economic Analysis

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SUBSIDIES IN AGRICULTURE
AND WIND ENERGY
INDUSTRY

INTRODUCTION
• SUBSIDY IS A FINANCIAL AID TO PROMOTE THE PRODUCTION AND CONSUMPTION.
• SUM OF MONEY PROVIDED BY THE GOVERNMENT OR PUBLIC BODY TO KEEP THE
PRICE OF A COMMODITY LOW.
• IT IS USUALLY IN THE FORM OF CASH PAYMENT AND TAX REDUCTION.

POSITIVE ASPECTS OF SUBSIDIES
IN AGRICULTURE
• MANAGE FOOD SUPPLY.
• CONSISTENT INCOME TO THE FARMERS.
• STRONGER FOOD SUPPLY.
• REVENUE FOR THE GOVERNMENT.
• IN WIND ENERGY INDUSTRY
• ENVIRONMENTAL BENEFIT.
• TECHNOLOGICAL INNOVATION
• ECONOMIC DEVELOPMENT

NEGATIVE ASPECTS OF SUBSIDIES
• IN AGRICULTURE
• DAMAGES THE ENVIRONMENT.
• GOVERNMENT INTERFERENCE.
• LAND OWNERS ARE THE
BENEFICIARIES OF AGRICULTURE
SUBSIDY.
• IN WIND ENERGY
INDUSTRY
• THE THREAT TO WILD
LIFE.
• NOISE

COUNTRIES THAT PROVIDE SUBSIDIES
IN AGRICULTURE
• CHINA
• MALAWI
• JAPAN
• SOUTH KOREA
• INDONESIA
IN WIND ENERGY
INDUSTRY
• RUSSIA
• VENEZUELA
• UNITED STATES

CONCLUSION
• SUBSIDES ARE ESSENTIAL TO REDUCE THE PRICE OF GOODS AND SERVICES.
• AGRICULTURAL SUBSIDIES ARE PROVIDED TO SUPPORT THE FARMERS.
• SUBSIDIES IN THE WIND ENERGY INDUSTRY ARE PROVIDED TO ENCOURAGE THE
INDUSTRY FOR MORE PRODUCTION OF POWER.

REFERENCES
• EDWARDS, C., 2018. AGRICULTURAL SUBSIDIES.
• CHIRWA, E. AND DORWARD, A., 2013. AGRICULTURAL INPUT SUBSIDIES: THE
RECENT MALAWI EXPERIENCE. OUP OXFORD.
• CHIBWANA, C., FISHER, M. AND SHIVELY, G., 2012. CROPLAND ALLOCATION
EFFECTS OF AGRICULTURAL INPUT SUBSIDIES IN MALAWI. WORLD
DEVELOPMENT, 40(1), PP.124-133.