Cost of the U.S. Sugar Program Revisited, The

John Beghin (), Barbara El Osta, Jay R. Cherlow and Samarendu Mohanty

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

Abstract: Using a multimarket model of U.S. sweeteners, the authors revisit the cost of the U.S. sugar program by analyzing the welfare implications of its removal. Their approach addresses the industrial organization of food industries that use sweeteners and treats the United States as a large importer. The authors estimate that, with the removal of the U.S. sugar program, cane growers, sugar beet growers, and beet processors would lose, respectively, $307 million, $650 million, and $89 million. Sweetener users would gain $1.9 billion. The deadweight loss of the current sugar program would be $532 million (all estimates are based on 1999 prices). World prices would increase by 13.2 percent with the removal of the program.

Date: 2003-01-01
New Economics Papers: this item is included in nep-agr
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Published in Contemporary Economic Policy 2003, vol. 21 no. 1, pp. 106-16

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Related works:
Journal Article: THE COST OF THE U.S. SUGAR PROGRAM REVISITED (2003)
Working Paper: The Cost of the U.S. Sugar Program Revisited (2003)
Working Paper: The Cost of the U.S. Sugar Program Revisited (2002)
Working Paper: Cost of the U.S. Sugar Program Revisited, The (2001)
Working Paper: Cost of the U.S. Sugar Program Revisited, The (2001)
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