This projects investigates whether the imposition of a tax on fertilizer use had a double dividend effect – generating revenue for the government while also permitting the reduction of other distorting income and sales taxes – and/or triple dividend effects, the latter occurring from improved market access for agricultural goods following the reduction in fertilizer use. The paper finds that the double dividend is very small and that the triple dividend was created only indirect taxes and tariffs on food were reduced. In both cases, the rich benefit more from the tax than the poor.
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