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Shade-Grown Coffee: Simulation and Policy Analysis for Coastal Oaxaca, Mexico

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Author Info

  • Blackman, Allen

    ()
    (Resources for the Future)

  • Albers, Heidi
  • Batz, Michael

    ()
    (Resources for the Future)

  • Ávalos-Sartorio, Beatriz

Abstract

Shade-grown coffee provides a livelihood to many farmers, protects biodiversity, and creates environmental services. Many shade-coffee farmers have abandoned production in recent years, however, in response to declines in international coffee prices. This paper builds a farmer decision model under price uncertainty and uses simulation analysis of that model to examine the likely impact of various policies on abandonment of shade-coffee plantations. Using information from coastal Oaxaca, Mexico, this paper examines the role of various constraints in abandonment decisions, reveals the importance of the timing of policies, and characterizes the current situation in the study region.

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Bibliographic Info

Paper provided by Resources For the Future in its series Discussion Papers with number dp-05-61.

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Date of creation: 31 Dec 2005
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Handle: RePEc:rff:dpaper:dp-05-61

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Related research

Keywords: coffee farming; decision analysis; numerical modeling; Monte Carlo; price variability;

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  1. Albers, Heidi J., 1996. "Modeling Ecological Constraints on Tropical Forest Management: Spatial Interdependence, Irreversibility, and Uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 73-94, January.
  2. Nestel, David, 1995. "Coffee in Mexico: international market, agricultural landscape and ecology," Ecological Economics, Elsevier, vol. 15(2), pages 165-178, November.
  3. Arrow, Kenneth J & Fisher, Anthony C, 1974. "Environmental Preservation, Uncertainty, and Irreversibility," The Quarterly Journal of Economics, MIT Press, vol. 88(2), pages 312-19, May.
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Cited by:
  1. Blackman, Allen & Ávalos-Sartorio, Beatriz & Chow, Jeffrey, 2008. "Land Cover Change in Mixed Agroforestry: Shade Coffee in El Salvador," Discussion Papers dp-08-30, Resources For the Future.
  2. Donnelly, Kallie & Noel, Jay E., 2006. "Optimal Market Contracting in the California Lettuce Industry," 2006 Annual meeting, July 23-26, Long Beach, CA 21461, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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