IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/331993.html
   My bibliography  Save this paper

The effects of the EC ethanol blend mandate on the EU/Global sugar Market and its implications on sugar trade with ACP countries

Author

Listed:
  • Sukati, Mphumuzi Angelbert

Abstract

The study aims determine the effect of the proposed (European Commission) EC transport fuel/ bioethanol blend mandate on European Union (EU27) ethanol market by use of a Partial Equilibrium Models as adapted from the FAPRI modelling framework for ethanol production. The outcomes of this study are to be used to study the potential shock this mandate will have on EU/global sugar market. It is envisaged that the proposed EC transport fuel/bioethanol blend mandate, with a tax rebates, will shock both the EU and world sugar market since the EU is a global player in sugar trade. Since bioethanol and sugar compete for the same feedstock, i.e. sugar cane or sugar beet, it is inevitable that the bioethanol blend mandate policies will have effects on the sugar market. By modelling the price of ethanol from that of transport fuel, the study has found that for the EU27 to meet the 5.75% blend mandate as proposed by the EC as a 2010 target, production of ethanol has to be increased by 185 % from 2008 levels and by 78 % from 2010 production forecast. The price of ethanol has to be increased by 226% above its average price from 1998 to 2008.

Suggested Citation

  • Sukati, Mphumuzi Angelbert, 2010. "The effects of the EC ethanol blend mandate on the EU/Global sugar Market and its implications on sugar trade with ACP countries," Conference papers 331993, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331993
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/331993/files/4679.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2006. "Distortions to World Trade: Impacts on Agricultural Markets and Farm Incomes," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 168-194.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kym Anderson, 2006. "Reducing Distortions to Agricultural Incentives: Progress, Pitfalls, and Prospects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(5), pages 1135-1146.
    2. Fofana, Ismaël & Corong, Erwin & Chatti, Rim & Bouazouni, Omar, 2012. "Taxation policy and gender employment in the Middle East and North Africa Region: A comparative analysis of Algeria, Egypt, Morocco, and Tunisia," IFPRI discussion papers 1227, International Food Policy Research Institute (IFPRI).
    3. Chad E. Hart & John C. Beghin, 2004. "Rethinking Agricultural Domestic Support under the World Trade Organization," Center for Agricultural and Rural Development (CARD) Publications 04-bp43, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. Nilson de Paula & Huáscar Pessali, 2014. "Agricultural Trade Negotiations and the Challenges of Food Security," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 3(3), pages 313-335, December.
    5. Aaditya Mattoo & Arvind Subramanian, 2009. "Currency Undervaluation and Sovereign Wealth Funds: A New Role for the World Trade Organization," The World Economy, Wiley Blackwell, vol. 32(8), pages 1135-1164, August.
    6. Reza Siregar & Ramkishen Rajan, 2006. "Models of Equilibrium Real Exchange Rates Revisited: A Selective Review of the Literature," Centre for International Economic Studies Working Papers 2006-04, University of Adelaide, Centre for International Economic Studies.
    7. Ernesto Valenzuela & Kym Anderson & Thomas Hertel, 2008. "Impacts of trade reform: sensitivity of model results to key assumptions," International Economics and Economic Policy, Springer, vol. 4(4), pages 395-420, February.
    8. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications - Books, The World Bank Group, number 6889.
    9. Kym Anderson & Will Martin & Dominique Mensbrugghe, 2010. "China, the WTO and the Doha Agenda," Palgrave Macmillan Books, in: David Greenaway & Chris Milner & Shujie Yao (ed.), China and the World Economy, chapter 1, pages 1-18, Palgrave Macmillan.
    10. Niek Koning & Arthur Mol, 2009. "Wanted: institutions for balancing global food and energy markets," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 1(3), pages 291-303, September.
    11. Kym Anderson & Will Martin & Dominique van der Mensbrugghe, 2006. "Doha Merchandise Trade Reform: What Is at Stake for Developing Countries?," The World Bank Economic Review, World Bank, vol. 20(2), pages 169-195.
    12. Nadia Belhaj Hassine & Veronique Robichaud & Bernard Decaluwé, 2010. "Agricultural Trade Liberalization, Productivity Gain and Poverty Alleviation: A General Equilibrium Analysis," Working Papers 519, Economic Research Forum, revised 05 Jan 2010.
    13. Kym Anderson & Peter Lloyd & Donald Maclaren, 2007. "Distortions to Agricultural Incentives in Australia Since World War II," The Economic Record, The Economic Society of Australia, vol. 83(263), pages 461-482, December.
    14. Ole Boysen & Hans Grinsted Jensen & Alan Matthews, 2016. "Impact of EU agricultural policy on developing countries: A Uganda case study," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(3), pages 377-402, June.
    15. Anderson, Kym & Valenzuela, Ernesto & van der Mensbrugghe, Dominique, 2009. "Welfare and Poverty Effects of Global Agricultural and Trade Policies Using the Linkage Model," Agricultural Distortions Working Paper Series 52785, World Bank.
    16. Kym Anderson & Ernesto Valenzuela, 2011. "Agricultural Policy as a Barrier to Global Economic Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume III, chapter 11, Edward Elgar Publishing.
    17. Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2013. "Estimating Effects of Price-Distorting Policies Using Alternative Distortions Databases," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 877-931, Elsevier.
    18. Romain Perez & Mustapha Sadni Jallab, 2009. "Preference erosion and market access liberalization: the African dilemma in multilateral negotiations on agriculture," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(2), pages 277-292, July.
    19. Anderson, Kym & Kurzweil, Marianne & Martin, William J. & Sandri, Damiano & Valenzuela, Ernesto, 2008. "Methodology for Measuring Distortions to Agricultural Incentives," Agricultural Distortions Working Paper Series 48326, World Bank.
    20. Anderson, Kym & Lattimore, Ralph G. & Lloyd, Peter J. & MacLaren, Donald, 2007. "Distortions to Agricultural Incentives in Australia and New Zealand," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 10407, Australian Agricultural and Resource Economics Society.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:331993. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.