Counterproductive Counternarcotic Strategies?
AbstractWe model the economic incentives surrounding opium crop production in Afghanistan. Specifically, we examine the impact of eradication policies when opium is used as a means of obtaining credit, and when the crops are produced in sharecropping arrangements. The analysis suggests that when perfect credit markets are available, an increased risk of eradication will lead to less land being allocated to opium poppy. However, when opium is used as a means of obtaining credit, the effects of eradication are no longer clear-cut. Finally, under sharecropping arrangements, increased risk of eradication will make the tenants worse off, while landlords may benefit.
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Bibliographic InfoPaper provided by Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development in its series Discussion Papers with number 118959.
Date of creation: Nov 2011
Date of revision:
Eradication; Informal credit markets; Opium; Sharecropping; Crop Production/Industries; Risk and Uncertainty; Q12;
Find related papers by JEL classification:
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
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