Preferential natural gas pricing for domestic urea industry
–
0
0
– (?)
+ for non-gas-
based plants 0 for gas-based plants
Options for changing farmgate price (no change in policy for producers)
Increase farmgate price Without targeting With targeting
+ +
– –
Options for improving nutrient balance without changing policies and prices Using technology and knowledge
+ to increase productivity
Source: Authors. Notes: +, will increase or improve; –, will decrease or deteriorate; ?, effect is uncertain; 0, will have ambiguous or no effect. Outcomes shaded in gray will impede reform.
aEffects on food prices also depend on other policy decisions. bDepends on the international market price of urea. Based on long-term trends in prices, it may be argued that fiscal sustainability improves. cIncomes may increase with technology-based policy changes.