Dwayne J. Haynes

Benefit-cost analysis: government compensation vs. consumer tax model

Abstract We provide a theoretical and empirical comparison of two historic production quota buyouts: the 2002 US Peanut Quota Buyout and the 2004 US Tobacco Quota Buyout. Producer compensation under the US Peanut Quota Buyout came from the treasury while the US Tobacco Buyout was paid for by a consumer tax (i.e., tobacco tax). Given these two buyouts, an important question arises: How does the method of compensation affect distribution and efficiency? Producers, consumers, and society favor a treasury buyout (TB) for several reasons. Producers are compensated considerably more under a TB, consumers are not burdened with the charge of funding the buyout, and society does not face additional efficiency losses due to the buyout.

Genetic engineering and food security: A welfare economics perspective

Abstract Purpose This chapter analyzes the economic implications of genetic engineering for food security. We discuss the asynchronous nature of genetically modified (GM) crop regulation and labeling requirements among countries, associated politics, and consumer perceptions of GM crops. Methodology/approach We perform an ex-ante analysis of the introduction of a GM rice variety in major rice exporting and importing countries (including potential producer and consumer impacts) within the framework of a partial equilibrium trade model. Findings Although the introduction of a GM rice variety that increases global yield by 5% could result in a consumer gain of US

The U.S. Tobacco Buyout: A Partial and General Equilibrium Analysis

23.4 billion to US

Inflated Production Quota Gains Paid for by a Consumption Tax

74.8 billion, it could also result in a producer loss of US

THE NOT-SO-SIMPLE ECONOMICS OF PRODUCTION QUOTA BUYOUTS

9.7 billion to US

Negative Externalities, Healthcare Costs, and E-Cigarettes

63.7 billion. The estimated net gain to society could be US

Consumer Tax Production Quota Buyouts and Negative Compensation: Producers' Dilemma

11.1 billion to US

Smoking and environmental pollution: Why there could be a free lunch

13.7 billion. Overall, we find a positive economic surplus for major exporters and importers of rice based on a 5% supply increase with a GM rice variety. Practical implications The adoption of transgenic (GM) rice varieties would have a far greater impact on rice prices for poorer counties than for richer countries. Therefore, GM rice may help ensure that more people throughout the world would have food security.

Alternative Approaches to Compensation and Producer Rights

This article analyzes the impact of removing the U.S. tobacco program in both a partial and general welfare economics framework. In a partial-equilibrium framework, a consumer taxfunded quota buyout can result in producer gains, consumer losses, net losses resulting from higher prices, and deadweight losses. In a general-equilibrium framework, society can gain from the buyout resulting from considerable potential savings from reduced healthcare costs attributable to a reduction in smoking. Additionally, we present a model that addresses the addictive qualities of tobacco while considering the effects of the quota buyout. We also conclude that another possible effect of the buyout is an increase in worker productivity because employees who are able to quit smoking reduce the amount of smoking-related sick days taken.