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Heydar Gholizadeh

حیدر قلی‌زاده، حبیب‌اله سلامی
بهینه‌سازی پرداخت یارانه بیمه در راستای اهداف محیط زیستی و ارتقای بهره‌وری آب
Optimization of Allocation of Premium Subsidy regards to Environmental Goals and Promotion of Water Productivity in Crops
Abstract


Due to the water shortage crisis, it is necessary the policymakers to improve water consumption productivity. In this study, a model of optimal allocation of subsidy was developed based on the microeconomic optimization theory. The model was evaluated by applying to premium subsidy allocation to the cereal crops’ insurance in Iran. In developing the model, it was assumed that, policymaker on behalf of society, follows a social utility maximization in which the level of utility increases as the area coverage of insurance expands on the lands with higher water productivity. In this model, in addition to subsidy budget constraint, information on farmers’ willingness to pay for insurance, which is reflected in their demand functions, is taken into account as a determining factor facing policymaker in achieving its objective. Results indicate the optimal allocation of subsidy results in a redistribution of subsidy budget among different cereal producing regions and causes a more balanced distribution of funds among the regions.

 

 

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