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Economic Implications of Import Barriers to Protect the U.S. Sugar Industry with Particular Reference to Hawaii

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Title: Economic Implications of Import Barriers to Protect the U.S. Sugar Industry with Particular Reference to Hawaii
Authors: Leong, Jerrold K.
Scott, Frank S Jr.
Leung, PingSun
Keywords: sugarcane
import policies
sugar industry
Hawaii
decision support systems
show 2 moreagricultural subsidies
crop prices

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Issue Date: Mar 1989
Publisher: University of Hawaii
Citation: Leong JK, Scott FS Jr, Leung PS. 1989. Economic implications of import barriers to protedt the U.S. sugar industry with particular reference to Hawaii. Honolulu (HI): University of Hawaii. (Research Series; RS-058).
Series/Report no.: Research Series
058
Abstract: This study analyzes consumer and producer costs and benefits of a modeled price support
program for sugar superimposed on the 1974-1981 period, which was essentially free
of effective price support programs and characterized by extreme variations in the U.S. price of domestic sugar. The study differs from previous studies in the sense that it models a with- and without-price support scenario. The modeled price support program is based on U. S. costs of production of raw cane sugar in 1981 and is imposed with appropriate deflation on the years 1974-1980 to permit comparison with the actual scenario without price supports. Research results indicate that an adequate price support program to maintain economic
viability of the U. S. sugar industry during the 1974-1981 period would have cost consumers an additional $4.77 per capita annually for sugar. This compares to an annual average loss of $4.7 billion, or $21 per capita annually, during the research period if the U.S. sugar industry had become demised, assuming no alternative employment of production factors. The cost to the Hawaii economy would have been comparatively much more severe, amounting to $836 million annually in aggregate and $880 per capita. The program could be administered at no cost to the government through the imposition of
import quotas. Per capita reduction in consumers' surplus would have averaged $1.76
annually based on the duty rate of $0.01875 per pound and $6.08 based on the 20 percent
ad valorem rate in effect in 1981. The study is expected to provide valuable insight to
policymakers for future sugar legislation.
Pages/Duration: 71 pages
URI/DOI: http://hdl.handle.net/10125/16568
ISSN: 0197-9310
Appears in Collections:Research Series, 1981 - 1986



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