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Currently European farmers produce considerable sugar quantities above their quota in differentEU member states which cannot be explained with standard profit maximizing behaviour.This paper analyses how much two alternative behavioural models - expected profit maximizationand utility maximization – can contribute to explain observed sugar production. The analysisis done for an average and the distribution of sugar producers in 13 EU countries basedon analytical derivations of expected profit and profit variability under the quota regulation.Despite considerable differences between countries and farms, a significant amount of C-sugarproduction cannot be explained by these models.

Keywords: Economic incentives ; sugar beets

Editor(s): Arfini, Filippo

Subject(s): Agricultural and Food Policy

Issue Date: 2005-02

Publication Type: Book/ Chapter

PURL Identifier: Page range: 588-608

Total Pages: 20

Record appears in: European Association of Agricultural Economists (EAAE) > 89th Seminar, February 2-5, 2005, Parma, Italy

Autor: Adenäuer, Marcel ; Heckelei, Thomas


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