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Tariff or quota protection-a case study of the Norwegian apple market

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  • Ivar Gaasland
  • Erling Vardal

Abstract

Tariffs and quotas are alternative trade instruments. In most cases it has been shown that the use of tariffs results in a higher national welfare than the use of quotas. Most of the research in this field has been purely theoretical. This paper aims to give an empirical contribution. Referring to the Norwegian apple market, we analyse the effects of tariffs and quotas. A tariff system is estimated to be slightly more efficient than a quota system (+ 2%). However, the distributional effects are substantial. Wholesalers and importers are main gainers in a quota system, while consumers and farmers are losers.

Suggested Citation

  • Ivar Gaasland & Erling Vardal, 1998. "Tariff or quota protection-a case study of the Norwegian apple market," Applied Economics, Taylor & Francis Journals, vol. 30(7), pages 951-957.
    • Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:951-957
    DOI: 10.1080/000368498325381
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    References listed on IDEAS

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    1. James E. Anderson, 1988. "The Relative Inefficiency of Quotas," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262511789, April.
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    Cited by:

    1. Winston Koh & Roberto Mariano & Yiu Kuen Tse, 2007. "Open vs. sealed-bid auctions: testing for revenue equivalence under Singapore's vehicle quota system," Applied Economics, Taylor & Francis Journals, vol. 39(1), pages 125-134.

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