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The Future Of The World Sugar Market--A Spatial Price Equilibrium Analysis


  • Nolte, Stephan


A spatial price equilibrium (SPE) model of the world sugar market is programmed. The model covers more than hundred regions and contains sugar in as a sole product. It has a detailed coverage of policies and bilateral trade agreements. It is programmed as a mixed complementarity problem (MCP) in GAMS and uses the PATH solver. The SPE framework offers considerable advantages over other model approaches applied to the sugar market before. Four scenarios are simulated: A baseline scenario until 2015/16, accounting for implementation of the EU reform and market access commitments already decided upon. The liberalization scenarios include an implementation of the Falconer proposal for the current round of WTO negotiations, a full liberalization by the EU and a liberalization of all sugar policies world-wide. In the latter the world market price increases by around 30%. Results are discussed and related to special properties of the SPE approach. Strengths and weaknesses are identified and an outlook on the further refinement of the analysis is given.

Suggested Citation

  • Nolte, Stephan, 2008. "The Future Of The World Sugar Market--A Spatial Price Equilibrium Analysis," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6663, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa107:6663

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    References listed on IDEAS

    1. Amani Elobeid & John Beghin, 2006. "Multilateral Trade and Agricultural Policy Reforms in Sugar Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(1), pages 23-48, March.
    2. 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, 2007. "FAPRI 2007 U.S. And World Agricultural Outlook," Staff General Research Papers Archive 12805, 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, 2007. "FAPRI 2007 U.S. and World Agricultural Outlook," FAPRI Staff Reports 7296, Food and Agricultural Policy Research Institute (FAPRI).
    3. Mitchell, Donald, 2004. "Sugar policies opportunity for change," Policy Research Working Paper Series 3222, The World Bank.
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    Cited by:

    1. Massimiliano Calì & Stephan Nolte & Nicola Cantore, 2013. "Sweet and Sour Changes in Trade Regimes," The World Economy, Wiley Blackwell, vol. 36(6), pages 786-806, June.
    2. repec:ags:gjagec:146504 is not listed on IDEAS
    3. Haß, Marlen, 2016. "Der Zuckermarkt Im Wandel: Was Passiert Nach Dem Eu-Quotenende?," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 245190, German Association of Agricultural Economists (GEWISOLA).
    4. Bart Van der Straeten & Jeroen Buysse & Stephan Nolte & Ludwig Lauwers & Dakerlia Claeys & Guido Van Huylenbroeck, 2010. "A multi-agent simulation model for spatial optimisation of manure allocation," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 53(8), pages 1011-1030.
    5. Nolte, Stephan & Grethe, Harald, 2011. "Der Markt für Zucker," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 61.

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    Crop Production/Industries; International Relations/Trade; Research Methods/ Statistical Methods;

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