IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Differential export taxes along the oilseeds value chain: a partial equilibrium analysis

  • Antoine Bouet

    (Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - Université Montesquieu - Bordeaux IV : EA2954)

  • Carmen Estrades

    (IFPRI - International Food Policy Research Institute - aaa)

  • David Laborde

    ()

    (IFPRI - International Food Policy Research Institute - aaa)

This paper studies the implementation of Differential Export Tax (DET) rates along value chains, in particular in the oilseeds chain (seeds/vegetable oils/biodiesel): this trade policy consists in relatively high export taxes on raw commodities and relatively low taxes on processed goods. This policy may generate public revenues and benefit final consumption by lowering domestic prices of vegetable oils and biodiesel, and also promotes production at more processed stages of transformation, particularly in response to tariff escalation by importing partners. We first study the theoretical justification of this trade policy with a simple international trade model. It shows how implementing a tax on exports of raw agricultural commodity in a country exporting seeds and vegetable oils, augments the sum of profits and final consumers' surplus in the processing sector, of farmers' surplus, and of public revenues. Then we develop a world partial equilibrium model of the oilseed value chain that illustrates these theoretical conclusions. We simulate: (i) the elimination of DETs in Argentina, Indonesia and Ukraine; (ii) the elimination of import tariffs applied by the EU and the US on the same goods; (iii) the elimination of DETs in Argentina, Indonesia and Ukraine and of import tariffs applied by the EU and the US. According to our estimates, both consumers and producers throughout the world benefit from the removal of export taxes in these value chains, respectively 931 million USD and 2.2 billion USD. The third scenario leads to a significant expansion of world production of all activities along the value chain, including the production of biodiesel for which world output would expand by one percent.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://hal.archives-ouvertes.fr/docs/00/78/16/29/PDF/CR_13EFI03.pdf
Download Restriction: no

Paper provided by HAL in its series Working Papers with number hal-00780574.

as
in new window

Length:
Date of creation: 17 Jan 2013
Date of revision:
Handle: RePEc:hal:wpaper:hal-00780574
Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00780574
Contact details of provider: Web page: http://hal.archives-ouvertes.fr/

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Antoine Bouët & David Laborde Debucquet, 2012. "Food crisis and export taxation: the cost of non-cooperative trade policies," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 148(1), pages 209-233, April.
  2. Gene M. Grossman & Elhanan Helpman, 1992. "Protection For Sale," NBER Working Papers 4149, National Bureau of Economic Research, Inc.
  3. Eaton, Jonathan & Grossman, Gene M, 1986. "Optimal Trade and Industrial Policy under Oligopoly," The Quarterly Journal of Economics, MIT Press, vol. 101(2), pages 383-406, May.
  4. Laborde Debucquet, David & Estrades, Carmen & Bouёt, Antoine, 2013. "A global assessment of the economic effects of export taxes:," IFPRI discussion papers 1241, International Food Policy Research Institute (IFPRI).
  5. Bernhofen, Daniel M, 1997. "Strategic Trade Policy in a Vertically Related Industry," Review of International Economics, Wiley Blackwell, vol. 5(3), pages 429-33, August.
  6. Costa, Rafael F. & Xia, Yan & Susanto, Dwi & Rosson, C. Parr, III & Adcock, Flynn J., 2008. "Analyzing the Impact of Changes in Trade and Domestic Policies: The Case of the Soybean Complex," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 45853, Southern Agricultural Economics Association.
  7. Mohamad F. Hasan & Michael R. Reed & Mary A. Marchant, 2001. "Effects of an Export Tax on Competitiveness: The Case of the Indonesian Palm Oil Industry," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 26(2), pages 77-90, December.
  8. Rodrik, Dani, 1989. "Optimal trade taxes for a large country with non-atomistic firms," Journal of International Economics, Elsevier, vol. 26(1-2), pages 157-167, February.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-00780574. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.