Table 1: Production, land use and yields of cotton in Greece and Spain, 1982-2003.
|
Crop Year |
Greece |
Spain |
||||
|
Land |
Production |
Yield |
Land |
Production |
Yield |
|
|
1982-1983 |
137.0 |
333.1 |
2.43 |
|
|
|
|
1983-1984 |
168.0 |
428.4 |
2.55 |
|
|
|
|
1984-1985 |
192.0 |
481.2 |
2.51 |
|
|
|
|
1985-1986 |
209.0 |
561.5 |
2.69 |
|
|
|
|
1986-1987 |
210.0 |
667.8 |
3.18 |
80.6 |
284.5 |
3.53 |
|
1987-1988 |
202.0 |
600.4 |
2.97 |
81.3 |
275.1 |
3.38 |
|
1988-1989 |
256.0 |
805.8 |
3.15 |
135.5 |
383.2 |
2.83 |
|
1989-1990 |
280.0 |
886.9 |
3.17 |
67.8 |
211.6 |
3.12 |
|
1990-1991 |
268.0 |
709.9 |
2.65 |
83.9 |
281.8 |
3.36 |
|
1991-1992 |
233.0 |
719.5 |
3.09 |
78.5 |
279.6 |
3.56 |
|
1992-1993 |
321.0 |
760.7 |
2.37 |
76.0 |
223.9 |
2.95 |
|
1993-1994 |
351.6 |
985.7 |
2.80 |
31.8 |
98.9 |
3.11 |
|
1994-1995 |
382.6 |
1 191.5 |
3.11 |
40.0 |
143.2 |
3.58 |
|
1995-1996 |
440.6 |
1 364.8 |
3.10 |
32.0 |
104.4 |
3.26 |
|
1996-1997 |
423.0 |
927.6 |
2.19 |
78.9 |
300.2 |
3.80 |
|
1997-1998 |
396.1 |
1 085.5 |
2.74 |
113.6 |
379.4 |
3.34 |
|
1998-1999 |
407.0 |
1 210.9 |
2.98 |
100.5 |
337.6 |
3.36 |
|
1999-2000 |
427.0 |
1 350.7 |
3.16 |
110.7 |
409.5 |
3.70 |
|
2000-2001 |
405.0 |
1 272.9 |
3.14 |
88.9 |
300.7 |
3.38 |
|
2001-2002 |
378.8 |
1 246.8 |
3.29 |
91.1 |
337.0 |
3.70 |
|
2002-2003 |
357.6 |
1 172.9 |
3.28 |
87.1 |
321.6 |
3.69 |
Table 2: Producer prices and cost of cotton support, 1995-2003.
| |
Target price |
Minimum price (€/t) |
World price |
Cost of support |
|
|
Greece |
Spain |
(million €) |
|||
|
1995-1996 |
1 063 |
792 |
1 010 |
359 |
740 |
|
1996-1997 |
1 063 |
911 |
900 |
318 |
800 |
|
1997-1998 |
1 063 |
850 |
778 |
359 |
761 |
|
1998-1999 |
1 063 |
719 |
821 |
221 |
903 |
|
1999-2000 |
1 063 |
622 |
668 |
199 |
855 |
|
2000-2001 |
1 063 |
745 |
949 |
370 |
733 |
|
2001-2002 |
1 063 |
593 |
822 |
185 |
804 |
|
2002-2003 |
1 063 |
744 |
855 |
238 |
871 |
Table 3: Policy variables under the proposed cotton policy regime.
| |
EU |
Greece |
Spain |
|
|
Total cost (million €) |
695.8 |
504.4 |
190.8 |
|
|
Income aid (million €) |
417.3 |
302.4 |
114.5 |
|
| |
Eligible land (,000 ha) |
470.0 |
380.0 |
90.0 |
|
Unit payment (€/ha) |
|
795.0 |
1 286.0 |
|
|
€/t) |
|
248.4 |
401.9 |
|
|
Production aid (million €) |
278.5 |
202.0 |
76.3 |
|
| |
Maximum Area ('000 ha) |
425.0 |
340.0 |
85.0 |
|
Unit payment (€/ha) |
|
594.0 |
898.0 |
|
|
(€/t) |
|
185.6 |
280.6 |
|
Table 4: Summary of welfare changes under the proposed cotton policy regime.
|
|
Price |
Producers' surplus |
Taxpayers' cost |
Deadweight loss |
|
(1) |
P |
PaeO |
|
ahf |
|
(2) |
|
cdeO+Pabc |
Pabc+ |
dgf |
|
(3) |
PW |
mneO+Pabc |
Pabc+cdg |
lnk |
|
(4) |
|
rieo+Pabc |
Pabc+mnkPW |
ist |
|
(2)-(1) |
|
abd |
-dbhg |
-ahgd |
|
(3)-(1) |
|
abd+mndc |
-dbhg |
-ahflkn |
|
(4)-(1) |
|
abd-cdir |
-dbhg |
fust-ahui |
Table 5: Estimates of short-run supply elasticity of cotton in Greece.
|
|
Linear supply |
Log-linear supply |
|
Zanias (1981) |
0.65 |
0.85 |
|
Apostolou & Varelas (1987) |
0.31 |
0.35 |
|
Lianos & Rizopoulos (1988) |
0.70 |
0.85 |
|
Mergos & Stoforos (1996) |
|
0.62 |
|
Karagiannis, Katranidis & Velentzas (1997) |
0.35 |
|
|
Lekakis (1998) |
0.48 |
0.56 |
|
Katranidis & Velentzas (2000) |
0.41 |
0.42 |
Table 6: Simulation results I, price and quantity variables.
|
|
P |
Q |
PW |
AP |
Q' |
(€/t) |
|
|
Greece (e = 0.35) |
|||||
|
2000/01 |
745 |
1 273 |
370 |
175 |
1 153 |
331 |
|
2001/02 |
593 |
1 247 |
185 |
186 |
1 084 |
226 |
|
2002/03 |
744 |
1 173 |
238 |
201 |
1 005 |
319 |
|
|
Greece (e = 0.70) |
|||||
|
2000/01 |
745 |
1 273 |
370 |
142 |
1 054 |
476 |
|
2001/02 |
593 |
1 247 |
185 |
211 |
957 |
375 |
|
2002/03 |
744 |
1 173 |
238 |
232 |
871 |
509 |
|
|
Spain (e = 0.35) |
|||||
|
2000/01 |
949 |
301 |
370 |
284 |
268 |
555 |
|
2001/02 |
822 |
337 |
185 |
269 |
284 |
480 |
|
2002/03 |
855 |
322 |
238 |
275 |
277 |
495 |
|
|
Spain (e = 0.70) |
|||||
|
2000/01 |
949 |
301 |
370 |
315 |
242 |
718 |
|
2001/02 |
822 |
337 |
185 |
313 |
244 |
686 |
|
2002/03 |
855 |
322 |
238 |
315 |
242 |
686 |
Table 7: Simulation results II, welfare changes.
| |
Present policy regime |
Proposed policy regime |
DPS
(%) |
||||
|
PS |
DWL |
TES |
PS |
DWL |
TES |
||
| |
Greece (e = 0.35) |
||||||
|
2000/01 |
782.4 |
42.0 |
91.2 |
842.3 |
9.2 |
98.2 |
7.7 |
|
2001/02 |
610.1 |
61.2 |
88.0 |
654.2 |
12.8 |
97.5 |
7.2 |
|
2002/03 |
720.0 |
70.6 |
88.1 |
690.3 |
11.1 |
97.8 |
-4.1 |
| |
Greece (e = 0.70) |
||||||
|
2000/01 |
616.4 |
84.1 |
82.4 |
705.6 |
22.0 |
95.6 |
14.5 |
|
2001/02 |
480.6 |
122.5 |
75.9 |
566.0 |
32.8 |
93.5 |
17.8 |
|
2002/03 |
567.3 |
141.1 |
76.8 |
589.7 |
29.7 |
94.1 |
4.0 |
| |
Spain (e = 0.35) |
||||||
|
2000/01 |
235.7 |
18.6 |
89.3 |
266.3 |
4.5 |
97.5 |
13.0 |
|
2001/02 |
228.5 |
29.1 |
86.4 |
228.6 |
5.2 |
97.3 |
0.0 |
|
2002/03 |
227.1 |
25.1 |
87.4 |
239.3 |
5.0 |
97.4 |
5.4 |
| |
Spain (e = 0.70) |
||||||
|
2000/01 |
185.7 |
37.2 |
78.6 |
228.4 |
11.0 |
94.2 |
23.0 |
|
2001/02 |
180.0 |
58.2 |
73.9 |
200.4 |
14.0 |
92.6 |
11.3 |
|
2002/03 |
178.9 |
50.2 |
74.7 |
208.2 |
13.1 |
93.2 |
16.3 |
Table 8: Estimates of PSE and DR.
| |
PSE |
DR |
|
|
Present policy regime |
Proposed policy regime |
||
| |
Greece (e = 0.35) |
||
|
2000/01 |
435.3 |
495.2 |
0.53 |
|
2001/02 |
447.5 |
491.6 |
0.54 |
|
2002/03 |
522.9 |
493.2 |
0.60 |
| |
Greece (e = 0.70) |
||
|
2000/01 |
393.3 |
482.4 |
0.49 |
|
2001/02 |
386.2 |
471.6 |
0.48 |
|
2002/03 |
452.2 |
474.7 |
0.54 |
| |
Spain (e = 0.35) |
||
|
2000/01 |
155.7 |
186.3 |
0.51 |
|
2001/02 |
185.5 |
185.5 |
0.58 |
|
2002/03 |
173.6 |
185.5 |
0.55 |
| |
Spain (e = 0.70) |
||
|
2000/01 |
137.1 |
179.8 |
0.46 |
|
2001/02 |
156.4 |
176.8 |
0.51 |
|
2002/03 |
148.5 |
177.7 |
0.49 |
