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Producer Impact of two Proposals for Reform in the Australian Sugar Industry

Author

Listed:
  • Simmons, Phil
  • Smith, Al

    (University of New England)

Abstract

The implications of reform of sugar tariffs and removal of the Queensland sugar monopoly for returns to Queensland and New South Wales sugar producers are examined in a market share model. Regression estimates of own-price domestic sugar elasticities are incorporated into the share framework and changes in producer surplus and asset values associated with the proposed reforms calculated. The major conclusions are (1) that removal of the Queensland monopoly would have a substantial impact on welfare of sugar producers in both Queensland and New South Wales (2) that removal of the tariff would have a substantial effect on the welfare of New South Wales producers but a relatively small effect on Queensland producers and (3) that removal of the tariff would have no effect on the level of imports of refined sugar.

Suggested Citation

  • Simmons, Phil & Smith, Al, 1994. "Producer Impact of two Proposals for Reform in the Australian Sugar Industry," Economic Analysis and Policy, Elsevier, vol. 24(1), pages 57-72.
  • Handle: RePEc:eee:ecanpo:v:24:y:1994:i:1:p:57-72
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    Citations

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    Cited by:

    1. Tcha, MoonJoong & Kuriyama, Takashi, 2003. "Protection policy under economies of scale -- the welfare effects of tariffs on the Australian automotive industry," Journal of Policy Modeling, Elsevier, vol. 25(6-7), pages 655-672, September.
    2. Christis G. Tombazos, 2003. "Unprotective Tariffs, Ineffective Liberalization, and Other Mysteries: An Investigation of the Endogenous Dimensions of Trade Policy Formation in Australia," Southern Economic Journal, John Wiley & Sons, vol. 70(1), pages 49-74, July.
    3. MoonJoong Tcha & Takashi Kuriyama, 2002. "Welfare Effects of Protection and Economies of Scale - The Case of The Australian Automotive Industry," Economics Discussion / Working Papers 02-11, The University of Western Australia, Department of Economics.

    More about this item

    Keywords

    Sugar; Tariff;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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