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A household model of opium-poppy cultivation in Afghanistan

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  • Greenfield, Victoria A.
  • Bond, Craig A.
  • Crane, Keith

Abstract

This article presents and implements a theoretical foundation for exploring Afghan farmers’ decisions to cultivate opium poppy that can be used to develop supply-control policy and guide future empirical research. To our knowledge, we are the first to employ a household production model that allows Afghan farmers to choose between opium-poppy and licit-crop cultivation to maximize their expected utility, while weighing the costs, benefits, and risks of agricultural production and consumption jointly. We derive policy lessons from the theoretical analysis and empirical evidence that reflect the complexity of Afghan farmers’ decision-making and the socio-economic and environmental factors that influence it.

Suggested Citation

  • Greenfield, Victoria A. & Bond, Craig A. & Crane, Keith, 2017. "A household model of opium-poppy cultivation in Afghanistan," Journal of Policy Modeling, Elsevier, vol. 39(5), pages 741-761.
    • Handle: RePEc:eee:jpolmo:v:39:y:2017:i:5:p:741-761
    DOI: 10.1016/j.jpolmod.2017.06.002
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    Cited by:

    1. Lim, King Yoong & Morris, Diego, 2020. "The economics of the illicit drugs-for-guns trade and growth," Economic Modelling, Elsevier, vol. 91(C), pages 218-232.

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    More about this item

    Keywords

    Opium poppy cultivation; Household production model; Supply control policy; Rural development; Afghanistan;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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