Economic Impacts of Isoglucose Deregulation on the European Sweetener Market

Joseph Cooper (), Eric Giraud-Héraud () and Vincent Réquillart

European Review of Agricultural Economics, 1995, vol. 22, issue 4, 425-45

Abstract: The EU sweetener market is highly regulated. In particular, production of isoglucose, the main competitor of sugar, is limited to about two percent of the sugar quota. Using a product differentiation model and game theory, we develop a normative analysis of the sweetener market and analyse the potential impact of the liberalisation of isoglucose production. We show that use of isoglucose in the EU would be a smaller percentage of total sweetener use than it is in the United States. We also demonstrate that such a liberalisation could not increase welfare if it is not accompanied by a reduction in the sugar quota. Copyright 1995 by Oxford University Press.

Date: 1995
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