Trade Policy Options for a Food-Security Commodity in Southern Africa: A Case Study of Maize in Zambia

We examine the performance of maize import policy options in one of the poorest countries in Southern Africa. The results are shaped by unique features of Zambia’s maize market: production that is limited by risk and highly variable returns, and local marketing margins that increase with imports and limit consumer trade gains. Results suggest that the market-stabilizing protection with the variable import levy (VL) may improve welfare, compared free trade or the current tariff regime. The VL also redistributes benefits to farmers and rural residents and away from urban consumers. Tax revenues could be used to fund transportation improvements or an urban consumer subsidy. Also, we estimate that market-led improvements in transport infrastructure, which would be conducive to more open trade policies, may be 25 years away.Maize Policy; Zambia; Food Security; Variable Levy

INTERNATIONAL PRICE TRANSMISSION IN THE U.S.-JAPAN SOFTWOOD TRADE

This article explores the supposition that international price margins in the U.S. Pacific Northwest-Japan softwood trade are influenced by nontariff trade barriers and inelastic supplies of international transportation services. Furthermore, it pursues the hypothesis that a regime separation occurs in the log trade with the existence and extent of rent creation related to conditions in the export market. Estimated price spreads which depend on trade volume serve as evidence. These factors magnify elasticities that measure the response of Japan's prices to changes in U.S. prices. Moreover, U.S. supplies on this market are more price-inelastic than its sheer size would suggest.International Relations/Trade,

Implications of MTBE Bans for the Iowa Economy

The growth of ethanol originates with a number of government regulatory decisions in the gasoline additives market. The ban on lead-based octane additives as a carcinogen during the 70\u27s and the requirement of oxygenated fuels in major U.S. cities in an effort to reduce smog has boosted the ethanol industry. Now a third regulation may also increase ethanol demand during the current decade. Methyl tertiary butyl ether (MTBE), the oxygenated chemical of the petroleum industry, appeared in the drinking water in California and other states that use reformulated fuels. California banned MTBE from gasoline effective at the end of 2002 after the U.S. EPA issued a health advisory against drinking water with MTBE. California\u27s request for a waiver from the federal oxygen requirement for reformulated fuel, which would avoid reliance on ethanol, was denied by the EPA. Ethanol has an assured share of the California reformulated gas market since it is the only remaining oxygen containing additive. Other urban states on the East Coast also face an MTBE ban. Based on the EPA\u27s recent ruling, these states are unlikely to get an oxygen waiver and they will also require ethanol

Supply, Land Quality, and Policy

Recent reforms of the EC grain sector justify renewed interest in the supply ^alysis of producer policies that include a subsidy and a land reduction requirement. Some supply analysis accounts for simultaneous land control and producer payment (Houck and Ryan, Gallagher). However, econometric methods of supply analysis have limited usefulness when major policy changes occur (Weaver). Major changes have indeed occurred in Europe, 1. CAP reform, introducing producer subsidies, low ?? price and set-aside. 2, Transition from central planning. But land quality is an important dimension of producer\u27s participation decisions (Brooks et al.). And the implications of producers with marginal land on market supply still require discussion. The potential for domestic supply distortions and price stability are relevant if trade agreements include such policies

Energy Production with Biomass: What Are the Prospects?

The advantages and limitations of the U.S. ethanol industry have both become apparent during the current period of high petroleum prices. One advantage is that ethanol is cost-reducing as a gasoline additive and as a gasoline replacement using E85 (motor fuel blends of 85 percent ethanol and just 15 percent gasoline). However, corn supply limits ethanol\u27s role in energy markets; ethanol-based corn demand will surpass exports when the 7.5 billion gallon Renewable Fuel Standard is fully implemented; and even if the Midwest were to secede from The Union, the entire Midwestern corn crop could only supply two-thirds of regional gasoline demand with ethanol. Clearly, a broader resource base and other processing technologies are needed if bioenergy is going to expand its role in the national energy scene

Corn Ethanol Processing Technology, Cost of Production, and Profitability

The typical corn ethanol processing facility is a dry mill. Dry mills grind dry corn to produce ethanol and a composite coproduct called distillers’ grains, which consists of the residual corn components after starch is removed for ethanol production. The size of dry mills constructed during the last 15 years has increased from about 15 million gallons per year (MGY) to 40-100 MGY. The baseline processing plant in this section uses natural gas for distillation and drying distillers\u27 grains, and purchased electricity powers the plant. A plant that dries distillers\u27 grains can move the product by truck, rail, barge, or ship to international markets. Distillers\u27 grains can also be fed “wet” to livestock, but distribution is limited by transportation costs. The estimated costs of production for a typical plant in May 2015 are shown in Table 4.1. A total of $1.30 per gallon was sufficient to recover total production costs

Ethanol blend: Ready for prime time?

People and decision-makers know about the jobs benefit from the Midwest\u27s growing ethanol industry. However, the possibility of relief from high gasoline prices is not as well-advertised. E85, an ethanol-based fuel substitute for gasoline has potential. But important aspects of the market situation have been excluded or described in a one-sided fashion

Agriculture in the Czech Lands and Slovakia: Some Problems, Policy Options and the Potential for Benefit-Cost Evaluation

Analyses of proposed policy changes often include three phases. First, the effect on the market is shown. Then the groups that gain and loose are identified. Finally, applied economists often quantify the benefits and costs, using methods such as supply and demand estimates from statistical studies of the market. Quantification draws criticism sometimes, because this process is imprecise. The criticism may take the form of this is not a problem or it\u27s not possible to answer these questions . However, decisions made with imprecise information are probably better than decisions that are avoided because there is no information, or decisions that are made in spite of the lack of information. Benefit-cost studies are beginning to appear in the analyses of the agricultural policy problems Eastern European countries. But there is still a lot to do. Below I review a few problems in the agricultural sectors in Czech Lands and Slovakia: In each case, I show how a proposed policy would affect the market and identify the benefits and costs. Then I explain how benefits might be quantified in further research. The problems considered below are the association agreements with the European Community in the trade area, the food security problem in the domestic policy area, and the employment policy of agricultural firms in the transition area

Trade policy options for a food-security commodity in southern Africa: a case study of maize in Zambia

We examine the performance of maize import policy options in one of the poorest countries in Southern Africa. The results are shaped by unique features of Zambia\u27s maize market: production that is limited by risk and highly variable returns, and local marketing margins that increase with imports and limit consumer trade gains. Results suggest that the market-stabilizing protection with the variable import levy (VL) may improve welfare, compared free trade or the current tariff regime. The VL also redistributes benefits to farmers and rural residents and away from urban consumers. Tax revenues could be used to fund transportation improvements or an urban consumer subsidy. Also, we estimate that market-led improvements in transport infrastructure, which would be conducive to more open trade policies, may be 25 years away