AbstractA framework is developed to estimate the social profitability of export subsidies. The approach indicates whether a definite gain has been obtained even though the new equilibrium is not a first best. A method is provided for measuring consumer surplus when the demand curve shifts as a consequence of the policy. The technique is applied to selected agricultural exports from Ghana. It is found that while the subsidies would be profitable there would also be a heavy fiscal burden associated with the subsidies even though the subsidy scheme may be partly self‐financing.