Recherche Agronomique
Volume 8, Numéro 15, Pages 84-94

Assessing Market Reforms On Tunisia's Low Rainfall Area Amulti Market Model Analysis

Authors : Chaherli N. . Thabet (3) B. . Mahfoudhi L. .

Abstract

The implications of market liberalization and drought policy on agriculture, and particularly the low rainfall area (LRA), are investigated within a multi-market mode) framework. The model <livides the country into three agro-ecological regions (the low rainfall area, the high rainfall area, and the rest of the country) and includes commodities of particular interest to the LRA. These are : barley, sheep meat, pasture and lamb. Other commodities ( e.g., wheat, beef meat, olive oil and forage) are included to capture the substitution and complementarity effects across regions. The results indica- te that market liberalization has important implications in terms of efficiency, equity and environ- mental sustainability. First, agricùltural market liberalization is efficient as the net welfare is posi- tively affected. Second, neutral market liberalization, as it is simulated, is equitable in that, no major differential impact on regional agricultural incarnes is noted. Last, market liberalization could have important implications on environmental sustainability. The analysis in this paper suggests that libe- ralization would attenuate range degradation through reduction in the derived demand for pasture and by moving lamb fattening to the high rainfall area, thus decreasing the pressure on the LRA's resource base.

Keywords

Low rainfall area, Market liberalization, Multi-market mode! and drought policy.