THE ANDEAN PRICE BAND SYSTEM: EFFECTS ON PRICES, PROTECTION AND PRODUCER WELFARE



21

Table 5. Welfare Effects of the Andean Price Band Systems: "Historical Policy" Scenario for Selected Products in Colombia,
Ecuador and Venezuela

Product

Country

Share of AC
Production (%)
______________(1)_____________

Risk Benefits
(2)

Transfer
Benefits
(3)

Net Producer
Benefits
(4)

Maize

Colombia

40%

-2.09%

4.92%

2.83%

Ecuador

21%

3.23%

42.67%

45.90%

Venezuela

39%

-1.07%

29.67%

28.60%

Weighted Average

0.59%

22.41%

______21.82%

Rice

Colombia

50%

4.13%

11.06%

15.19%

Ecuador

31%

1.65%

23.68%

25.33%

Venezuela

19%

-4.28%

68.63%

64.34%

Weighted Average

1.77%

25.85%

______27.62%

Sugar

Colombia

70%

3.80%

-49.88%

-46.08%

Ecuador

12%

3.13%

7.46%

10.59%

Venezuela

18%

3.82%

21.94%

25.77%

Weighted Average

3.72%

-29.76%

-26.04%



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