The Cost of the U.S. Sugar Program Revisited

We analyze the welfare cost of the U.S. sugar program, using a multimarket model of U.S. sweetener markets, which includes raw crops, sugar extraction and refining, and sweetener users (food-processing industries and final consumers). We address the industrial organization of food industries using sweeteners and treat the United States as a large importer. With the removal of the program, cane growers, sugar beet growers and processors would lose $307, $650, and $89 million (1999 prices), respectively; sweetener users would gain $1.9 billion; World prices would increase by 13.2 percent. The deadweight loss of the program is estimated at $532 million.


Issue Date:
2002-02
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/125058
Total Pages:
37
JEL Codes:
Q18; Q17; F13.




 Record created 2017-04-01, last modified 2017-04-26

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