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Modelling the effects of an abolition of the EU sugar quota on internal prices, production and imports

Author

Listed:
  • Nolte, Stephan
  • Buysse, Jeroen
  • Van der Straeten, Bart
  • Claeys, Dakerlia
  • Lauwers, Ludwig H.
  • Van Huylenbroeck, Guido

Abstract

We apply a spatial price equilibrium model of the world sugar market to simulate an abolishment of the EU quota system in 2015/16. To overcome the normative nature of the approach, we calibrate the model by attaching a non-linear cost term to each trade flow. This is in some regards similar to positive mathematical programming. We suggest an economic interpretation and an econometric specification of the cost term. Production in the EU increases to almost 16 million tons. Twelve member states increase production, seven reduce it. Preferential imports are significantly reduced. Simulated effects are found to be more pronounced the higher the world market price.

Suggested Citation

  • Nolte, Stephan & Buysse, Jeroen & Van der Straeten, Bart & Claeys, Dakerlia & Lauwers, Ludwig H. & Van Huylenbroeck, Guido, 2010. "Modelling the effects of an abolition of the EU sugar quota on internal prices, production and imports," 114th Seminar, April 15-16, 2010, Berlin, Germany 61346, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa114:61346
    DOI: 10.22004/ag.econ.61346
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    References listed on IDEAS

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    1. Beghin, John C. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Fuller, Frank H. & Hart, Chad E. & Kovarik, Karen P. & Tokgoz, Simla & Yu, Tun-Hsiang & Wailes, Eric J. & Chavez, Edward & Woma, 2006. "FAPRI 2006 U.S. And World Agricultural Outlook," Staff General Research Papers Archive 12597, Iowa State University, Department of Economics.
      • Beghin, John C. & Dong, Fengxia & Elobeid, Amani E. & Fabiosa, Jacinto F. & Fuller, Frank H. & Hart, Chad E. & Kovarik, Karen & Tokgoz, Simla & Yu, Tun-Hsiang (Edward) & Wailes, Eric J. & Chavez, Eddi, 2006. "FAPRI 2006 U.S. and World Agricultural Outlook," FAPRI Staff Reports 7319, Food and Agricultural Policy Research Institute (FAPRI).
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    Cited by:

    1. Tangermann, Stefan, 2012. "Preisanstieg am EU-Zuckermarkt: Bestimmungsgründe und Handlungsmöglichkeiten der Marktpolitik. Gutachten für den Milchindustrie-Verband e.V," DARE Discussion Papers 1203, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).

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    Keywords

    Agricultural and Food Policy; Farm Management; Land Economics/Use;
    All these keywords.

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