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A Welfare Analysis of Port User Fees: The Case of Grain and Soybean Exports

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  • Peterson, E. Wesley F.
  • Viscencio-Brambila, Hector
  • Fuller, Stephen

Abstract

User fees have become a popular means of financing public services, including certain transportation facilities. The Water Resources Development Act of 1986 includes provisions for user fees to finance part of the costs of operations, maintenance, and new construction of the U.S. port system. The purpose of this paper is to evaluate the welfare implications of this legislation. An analytical model is developed and used to estimate the impact of port user fees on grain and oilseed producers, consumers, and the government. The results of the analysis indicate that the user fee has a relatively small effect on producer welfare and that the efficiency gains resulting from the replacement of the government subsidy for port operations, maintenance, and new construction with a user fee are negligible.

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  • Peterson, E. Wesley F. & Viscencio-Brambila, Hector & Fuller, Stephen, 1988. "A Welfare Analysis of Port User Fees: The Case of Grain and Soybean Exports," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 20(2), pages 101-108, December.
    • Handle: RePEc:cup:jagaec:v:20:y:1988:i:02:p:101-108_01
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    1. Maury E. Bredahl & William H. Meyers & Keith J. Collins, 1979. "The Elasticity of Foreign Demand for U.S. Agricultural Products: The Importance of the Price Transmission Elasticity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(1), pages 58-63.
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