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Eu Sugar Policy Reform: Quota Reduction And Devaluation

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  • Witzke, Heinz Peter
  • Heckelei, Thomas

Abstract

The research presented is part of a larger study aiming at the analysis of reform options for the EU sugar policy regime. This paper focuses on the effects of quota reduction and support price cuts. A thorough theoretical analysis investigates the implications of farm heterogeneity for aggregate supply modeling purposes under the current sugar regime. It can be shown that the treatment of sugar quantities produced under the different quotas and without quota can be treated as different products in an aggregate profit function analysis. Marginal and discrete price and quota effects are derived. Subsequently, the derived behavioral characteristics are implemented in the framework of the agricultural sector model CAPSIM to provide a broader policy evaluation. Preliminary simulation results are presented for the EU at aggregate level.

Suggested Citation

  • Witzke, Heinz Peter & Heckelei, Thomas, 2002. "Eu Sugar Policy Reform: Quota Reduction And Devaluation," 2002 Annual meeting, July 28-31, Long Beach, CA 19807, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea02:19807
    DOI: 10.22004/ag.econ.19807
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    References listed on IDEAS

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    1. Bureau, Jean-Christophe, et al, 1997. "Quota Mobility in the European Sugar Regime," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 24(1), pages 1-30.
    2. Barkaoui, A. & Butault, J. P. & Guyomard, H., 1997. "Mobilité des droits à produire dans l'Union européenne : Conséquences d'un marché des quotas laitiers à l'échelle régionale, nationale ou communautaire," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 44.
    3. Mahler, Peter, 1994. "Efficiency Losses as a Result of Insufficient Structural Adjustments Due to the EC Sugar Regime: The Case of Germany," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 21(2), pages 199-218.
    4. Ulrich Koester & Peter Michael Schmitz, 1982. "The EC sugar market policy and developing countries," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 9(2), pages 183-204.
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    Cited by:

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    2. Maurizio Bussolo & Jann Lay, 2003. "Globalisation and Poverty Changes in Colombia," OECD Development Centre Working Papers 226, OECD Publishing.
    3. Adenäuer, Marcel & Heckelei, Thomas, 2005. "Economic Incentives to Supply Sugar Beets in Europe," 89th Seminar, February 2-5, 2005, Parma, Italy 231822, European Association of Agricultural Economists.
    4. Marcel ADENÄUER & Kamel LOUHICHI & Bruno HENRY DE FRAHAN & Heinz Peter WITZKE., 2010. "Impact of the "Everything but Arms" Initiative on the EU Sugar Sub-Sector," EcoMod2004 330600001, EcoMod.
    5. Brockmeier, Martina & Sommer, Ulrich & Thomsen, Karin, 2005. "Sugar Policies: An Invincible Bastion for Modelers?," 89th Seminar, February 2-5, 2005, Parma, Italy 232588, European Association of Agricultural Economists.
    6. Gohin, Alexandre & Bureau, Jean-Christophe, 2006. "WTO Discipline and the CAP: the Constraints on the EU Sugar Sector," Working Papers 18872, TRADEAG - Agricultural Trade Agreements.
    7. Gohin, Alexandre & Bureau, Jean-Christophe, 2006. "Bridging Micro- and Macro-Analyses of the EU Sugar Program: Methods and Insights," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25799, International Association of Agricultural Economists.

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