The GSI's method for quantifying irrigation subsidies

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The GSI's method for quantifying irrigation subsidies draws on the main components of the Net Cost to the Supplier approach. This focuses on measuring identifiable government expenditures as reported in budget reports and official documentation, avoiding the location-specific and time-dependant problems that arise in attempts to factor in fluctuating prices of water and the wide range of externalities, both positive and negative, that can be linked to irrigation subsidies.

The long-term aim of developing the method is to move towards a consistent and internationally accepted approach for measuring irrigation subsidy intensities. The methodology is published in the form of a discussion paper, and comment on it is welcomed.

The GSI has also commissioned two country case studies, which will attempt to estimate irrigation subsidies using the methodology in one developed country and one developing country: Spain and India. These countries have been selected for their suitability to test out the method and the importance of irrigation subsidies in their agricultural sectors. The GSI intends for the case studies to be the precursor of an expanded initiative, involving a further series of reports on both developed and developing countries.

Please send any questions or comments on the paper to ccharles@iisd.org.