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Policy induced substitution of high fructose corn syrup for sugar in the United States

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  • Hafi, Ahmed
  • Connell, Peter
  • Roberts, Ivan

Abstract

US sugar policies have depressed the world sugar price markedly, and tlte substitution of high fructose com syrup for sugar brought about by US sugar policies has contributed a major part of this price depressing effect. Current US sugar policies impose substantial costs on US consumers. the US economy and sugar exporters, most of which are developing countries. This paper measures the impact that the increased consumption of high fructose com has had on both the USand world sugar economies. Three scenarios are analysed by running SUGABARE. an econometric model of the world sugar market. The first scenario models the actualpolicies in place from 1982 to 1993. The second excludes the expansion in high fructose com syrup production brought about by US sugar policies, while the third provides for the full liberalisation of US sugar policies.

Suggested Citation

  • Hafi, Ahmed & Connell, Peter & Roberts, Ivan, 1996. "Policy induced substitution of high fructose corn syrup for sugar in the United States," 1996 Conference (40th), February 11-16, 1996, Melbourne, Australia 156391, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare96:156391
    DOI: 10.22004/ag.econ.156391
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    File URL: https://ageconsearch.umn.edu/record/156391/files/1996-04-08-09.pdf
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    Keywords

    Agricultural and Food Policy;

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