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Abstract

Methyl Bromide in the United States is supplied by only four firms (two producers and two importers) who reap windfall profits from MB restrictions. Since 1992 we estimate that over $300 million in cumulative windfall profits have resulted from restrictions on Methyl Bromide and currently run between $65 to $80 million annually. We examine the factors that influenced this price rise, the changes in quota premiums and deadweight losses under trade and no-trade scenarios; and how methods to capture and redistribute windfall profits will alter efficiency and equity.

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