We develop an analytical framework for evaluating the consequences of a market of quota rights in the European Union sugar sector. Three particularities of the sugar regime, i.e., the distinction between 'A' and 'B' quotas, the levy mechanism and the possibility of producing 'C' sugar at the world price, are modelled. The empirical objective is to assess how cross-border quota transferability would influence production in the various regions of the European Union. It appears that roughly 45 per cent of the production could be reallocated. Some of the sugar production is likely to shift from Southern Europe and the Benelux mainly towards France, Germany and Denmark. However, substantial transfers would take place between producers in different regions within the same country. Coauthors are Herve Guyomard, Laurent Morin, and Vincent Requillart. Copyright 1997 by Oxford University Press.
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Article provided by Oxford University Press for the Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.
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