A comparative analysis of water price support versus drought compensation scheme
研究了半干旱地区政府如何通过干旱补偿方案或水价支持来鼓励农民转向更有利可图但风险更高的作物种植，并以以色列为例比较了两种干预措施的效果。
Abstract This paper examines the preferred governmental intervention towards crops growing methods in semi‐arid regions. These regions are characterized by an average amount of rain which is sufficient to grow the crop but it is also very risky. The farmers' attitude towards risk motivates the government to encourage them to shift to more profitable and riskier crop rotations. The paper analyses two alternatives of which the government can work through: drought compensation scheme (DCS) and water price support (WPS). The semi‐arid region in Israel is analyzed and policy conclusions are derived. In particular it is shown that for different sub‐regions within the semi‐arid region different mechanisms are preferred by the government and the farmers. Sometimes these mechanisms coincide and sometimes they do not. A welfare analyzes compares the different situations.