Fertilizer Subsidy Policies in Burkina Faso : A Comparison of Impacts by Funding Mechanism Using a Computable General Equilibrium Model

Since 2008, Burkina Faso has been committed to an extensive program ofspending on subsidies for agricultural inputs and equipment to increaseagricultural productivity and reduce poverty. However, the country has limitedfiscal space. This study uses a computable general equilibrium model coupledwith a microsimulation model to assess the impacts of the subsidy policy onagricultural production and poverty, under three funding modalities. We find thatthe subsidy policy is beneficial to agricultural growth and poverty reduction. Wefind that financing the subsidy through corporate income taxes further reducespoverty among rural households