Document Type

Working Paper

Publication Date


Working Paper Number

WP #13010, May 2013


We analyze the various welfare costs, transfers, trade, and employment consequences of the current U.S. sugar program for U.S. consumers, other sugar-users, sugar refiners, cane and beet growing and processing industries, other associated agricultural sectors, and world markets. The removal of the sugar program would increase U.S. consumers' welfare by $2.9 to $3.5 billion each year and generate a modest job creation of 17,000 to 20,000 new jobs in food manufacturing and related industries. Imports of sugar containing products would fall dramatically especially confectioneries substituting for domestic inputs under the sugar program. Sugar imports would rise substantially to 5 to 6 million short tons raw sugar equivalent. World price increases would be minor, equivalent to about 1 cent per pound.

Publication Status

Published in Applied Economic Perspectives and Policy, Vol. 37 no. 1 (March 2015): 1-33.

JEL Classification

F13, Q17, Q18

File Format



39 pages

Included in

Economics Commons