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Economic Impacts of Isoglucose Deregulation on the European Sweetener Market

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Author Info
Cooper, Joseph C
Giraud-Heraud, Eric
Requillart, Vincent

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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.

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Publisher Info
Article provided by Oxford University Press for the Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 22 (1995)
Issue (Month): 4 ()
Pages: 425-45
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Handle: RePEc:oup:erevae:v:22:y:1995:i:4:p:425-45

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