The Impact of the U.S. Sugar Program Redux

John Beghin () and Amani Elobeid

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: We analyze the various welfare costs, transfers, trade, and employment consequences of the current U.S. sugar program for U.S. consumers, other sugar-users, sugar refiners, cane and beet growing and processing industries, other associated agricultural sectors, and world markets. The removal of the sugar program would increase U.S. consumers' welfare by $2.9 to $3.5 billion each year and generate a modest job creation of 17,000 to 20,000 new jobs in food manufacturing and related industries. Imports of sugar containing products would fall dramatically especially confectioneries substituting for domestic inputs under the sugar program. Sugar imports would rise substantially to 5 to 6 million short tons raw sugar equivalent. World price increases would be minor, equivalent to about 1 cent per pound.

Keywords: sugar program; tariff rate quota; welfare cost; employment effect; sugar containing products (search for similar items in EconPapers)
JEL-codes: F13 Q17 Q18 (search for similar items in EconPapers)
Date: 2013-05-06
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Published in Applied Economic Perspectives and Policy, March 2015, vol. 37 no. 1, pp. 1-33

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http://www2.econ.iastate.edu/papers/p16172-2013-05-07.pdf (application/pdf)

Related works:
Journal Article: The Impact of the U.S. Sugar Program Redux (2015)
Working Paper: The Impact of the U.S. Sugar Program Redux (2015)
Working Paper: The impact of the U.S. sugar program redux (2015)
Working Paper: The Impact of the U.S. Sugar Program Redux (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:36172

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