Sectoral and Economywide Impacts of Eliminating the Export Enhancement Program

摘要

Under the current fiscal climate there is an interest to re-evaluate the cost-effectiveness of the Export Enhancement Program (EEP). The economic impact of removing EEP subsidies depends on assumptions about export demand response and producer supply response. We use a U.S. computable general equilibrium model to explore the impacts of eliminating the EEP on farm sector income and consumer welfare, and the sensitivity of our results to different assumptions about supply and demand elasticities. Eliminating the EEP program increases consumer welfare, lowers farm income, and leads to a 50-percent deficiency payment offset of EEP savings.