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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:An evaluation of a two-tier price scheme and possible ethanol production in the South African sugar industry
Authors:Ortmann, G.F.
Nieuwoudt, W.L.ISNI
Year:1987
Periodical:South African Journal of Economics
Volume:55
Issue:2
Pages:121-135
Language:English
Geographic term:South Africa
Subjects:prices
cane sugar
External link:https://doi.org/10.1111/j.1813-6982.1987.tb01094.x
Abstract:The South African sugar industry introduced a two-tier price scheme in 1985 in an effort to reduce export losses. This scheme replaced the single-price system under which producers received the average (blend) price of domestic and export sales. Under the new scheme, called A and B pools, the A pool covers requirements of the domestic market plus about 50 percent of normal exports in the past. This study evaluates the effects and the social costs of having A-pool quotas. The analysis is extended to evaluate the effects and social costs of producing ethanol from sugarcane. Ethanol production is now considered as an extension to the two-tier price scheme. Bibliogr.
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