WINDFALL PROFITS, OLIGOPOLY PRICING AND THE METHYL BROMIDE PHASEOUT

Keith Sargent and Jin Kim

No 20259, 2004 Annual meeting, August 1-4, Denver, CO from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Methyl Bromide in the United States is supplied by only four firms (two producers and two importers) who reap windfall profits from MB restrictions. Since 1992 we estimate that over $300 million in cumulative windfall profits have resulted from restrictions on Methyl Bromide and currently run between $65 to $80 million annually. We examine the factors that influenced this price rise, the changes in quota premiums and deadweight losses under trade and no-trade scenarios; and how methods to capture and redistribute windfall profits will alter efficiency and equity.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 10
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea04:20259

DOI: 10.22004/ag.econ.20259

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