an ex-post econometric analysis of the abolishment of the canadian wheat board

This paper analyzes the impact the Canadian Wheat Board (CWB) had on facilitating grain movements and utilizing terminal capacity from 2009/10 to 2015/16 in western Canada through econometric methods. We conduct an ex-post analysis on capacity utilization for every grain delivery station in western Canada controlling for distance to port, car spots, railway companies, and production. We use a CWB dummy variable and freight rates from Quorum Corporation to estimate capacity utilization before and after CWB abolishment. We analyze whether the CWB had an impact on terminal turnover ratios. We conclude the regulatory change in abolishing the CWB significantly reduced capacity utilization and delivery performance despite record production and implementation of ad hoc policies. Current regulatory changes regarding the Minimum Revenue Entitlement (MRE) could have similar outcomes on grain handling performance. Acknowledgement :

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Conference Paper/ Presentation
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JEL Codes:
L11; Q13

 Record created 2018-10-02, last modified 2020-10-28

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