The cost of the U.S. sugar program revisited

John C. Beghin, Barbara El Osta, Jay R. Cherlow, Samarendu Mohanty

Research output: Contribution to journalArticlepeer-review

Abstract

The article analyzes the welfare cost of the U.S. sugar program using a multimarket model of U.S. sweetener markets. The latter includes raw crops, sugar extraction and refining, and sweetener users (food-processing industries and final consumers). The authors address the industrial organization of food industries using sweeteners and treat the United States as a large importer. With the removal of the program, this article estimates (all figures in 1999 dollars) that in 1998 cane growers, sugar beet growers, and processors would have lost $307, $650, and $89 million, respectively; sweetener users would have gained $1.9 billion. World prices would have increased by 13.2%. The deadweight loss of the program is estimated at $532 million. (JEL Q18, Q17, F13).

Original languageEnglish (US)
Pages (from-to)106-116
Number of pages11
JournalContemporary Economic Policy
Volume21
Issue number1
DOIs
StatePublished - Jan 2003
Externally publishedYes

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Public Administration

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