On the N-fertilizer tax scenario, we can see that the prominent decreases in cropping
areas for major crops are from Nili maize, summer sorghum, sugar beet, and sugar cane. These
crops are ranked comparatively high in N-fertilizer application rate. Cropping area for lentil,
cotton, and onions increased at a lower N-fertilizer tax rate since their marginal profitability is
higher than the other crops, although the N-fertilizer application rate are high for both summer
and winter onions. However, as the N-fertilizer tax rate getting higher, the production of more
crop types decreased including cotton and vegetables. Soybean cropping area also decreased as
the N-fertilizer tax rate increased. This is because N-fertilizer has to be used in Egypt for
soybean production because soils are nitrogen deficient and comprised mainly by sandy and clay
soils that have low nitrogen use efficiency ratings. Soybean production in Egypt is low (about
13 thousand feddans in 2001). The reduction of irrigation water, however, is mainly from the
decrease in paddy rice production along with sugar cane, wheat, maize, tomato and other
vegetables.
Under energy tax policies, the model tends to shift more land to plant onions and cotton.
The planting areas for some of the water intensive crops decreased including sugar cane, paddy
rice, long berseem, and summer maize. These crops grow in specific regions require more
pumping hours than other crops. Sugar cane in the west delta requires highest pumping hours
among all crops. Paddy rice in the west delta requires much hours for pumping as well. Energy
tax also affects the production of potato, tomato and other vegetables which also involve high
pumping hours during the growing time.
Cropping area reduction mainly happens with sugar cane and paddy rice under output tax
scenario. However, the production of profitable crops, such as lentil, increased up to 26% along
with the increasing tax on sugar cane and paddy rice. A slight increase also happens with the
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