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Interregional Analysis Of The Impacts Of Eliminating European Union Milk Production Quotas

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  • Bouamra-Mechemache, Zohra
  • Chavas, Jean-Paul
  • Cox, Thomas L.
  • Requillart, Vincent

Abstract

An hedonic spatial equilibrium model of the European Union dairy sector is used to evaluate the interregional impacts of eliminating milk production quotas under a variety of domestic policy (intervention prices and domestic production/consumption subsidies) and trade policies (tariff rate quotas and export subsidies). The simulation results indicate that the removal of the EU milk production quotas is welfare improving both only with substantial liberalization of trade. Hence, production quota removal by itself is not a desirable policy alternative for either the EU or the world. Rather, policy reform should involve the joint consideration of domestic and trade policy instruments.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2001 Annual meeting, August 5-8, Chicago, IL with number 20677.

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Date of creation: 2001
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Handle: RePEc:ags:aaea01:20677

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Keywords: Agricultural and Food Policy; Livestock Production/Industries;

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  1. Turunen-Red, Arja H. & Woodland, Alan D., 2000. "Multilateral policy reforms and quantity restrictions on trade," Journal of International Economics, Elsevier, vol. 52(1), pages 153-168, October.
  2. Chavas, Jean-Paul & Cox, Thomas L. & Jesse, Edward, 1998. "Spatial allocation and the shadow pricing of product characteristics," Agricultural Economics, Blackwell, Blackwell, vol. 18(1), pages 1-19, January.
  3. Anderson, James E & Neary, J Peter, 1996. "A New Approach to Evaluating Trade Policy," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 63(1), pages 107-25, January.
  4. GianCarlo Moschini & Paolo Sckokai, 1994. "Efficiency of Decoupled Farm Programs under Distortionary Taxation," Food and Agricultural Policy Research Institute (FAPRI) Publications 94-gatt5, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  5. Neary, J Peter, 1995. "Trade Liberalisation and Shadow Prices in the Presence of Tariffs and Quotas," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(3), pages 531-54, August.
  6. Falvey, Rodney E., 1988. "Tariffs, quotas and piecemeal policy reform," Journal of International Economics, Elsevier, vol. 25(1-2), pages 177-183, August.
  7. Browning, Edgar K, 1987. "On the Marginal Welfare Cost of Taxation," American Economic Review, American Economic Association, vol. 77(1), pages 11-23, March.
  8. Diewert, W E & Turunen-Red, A H & Woodland, A D, 1989. "Productivity- and Pareto-Improving Changes in Taxes and Tariffs," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 56(2), pages 199-215, April.
  9. Anderson, James E & Neary, J Peter, 1992. "Trade Reform with Quotas, Partial Rent Retention, and Tariffs," Econometrica, Econometric Society, Econometric Society, vol. 60(1), pages 57-76, January.
  10. Turunen-Red, Arja H & Woodland, Alan D, 1991. "Strict Pareto-Improving Multilateral Reforms of Tariffs," Econometrica, Econometric Society, Econometric Society, vol. 59(4), pages 1127-52, July.
  11. Gardner, Bruce L, 1987. "Causes of U.S. Farm Commodity Programs," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 95(2), pages 290-310, April.
  12. de Gorter, Harry & Meilke, Karl D., 1988. "Efficiency Of Alternative Policies For The EC's Common Agricultural Policy," Working Papers, University of Guelph, Department of Food, Agricultural and Resource Economics 123559, University of Guelph, Department of Food, Agricultural and Resource Economics.
  13. Dixit, Avinash K, 1970. "On the Optimum Structure of Commodity Taxes," American Economic Review, American Economic Association, vol. 60(3), pages 295-301, June.
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