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Bioeconomics of Climate Change Adaptation: Coffee Berry Borer and Shade-Grown

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  • Atallah, Shady S.
  • Gómez, Miguel I.

Abstract

Research on climate change in recent decades has disproportionately focused on predicting impacts while largely ignoring adaptation strategies. How agricultural systems can adapt to minimize the uncertainty caused by rising temperatures is one of the most important research issues today. We focus on the coffee berry borer, the most important coffee pest worldwide, which has recently expanded across the tropics as a result of rising temperatures, threatening coffee farms worldwide. Intercropping shade trees with coffee trees is being promoted as a promising climate change adaptation strategy that can protect coffee plantations from microclimate variability and reduce pest infestations. Little is known, however, on whether or not the benefits of the ecological services provided by shade trees justify the ensuing yield reduction associated with shade-grown coffee production systems. We develop a computational, bioeconomic model to analyze the ecological and economic sustainability of switching from a sun-grown to shade-grown coffee system as a climate change adaptation strategy. In particular, we model the spatial-dynamic pest diffusion at the plant level and evaluate alternative shading strategies based on farm expected net present values. Using parameters from Colombia, preliminary model findings suggest that the ecological benefits of shade-grown planting systems justify the forgone revenues from lower per acre yields only for high levels of shading. We solve for the threshold net price premium of shade-grown coffee that would make this climate change adaptation strategy cost-effective at moderate shading levels.

Suggested Citation

  • Atallah, Shady S. & Gómez, Miguel I., 2014. "Bioeconomics of Climate Change Adaptation: Coffee Berry Borer and Shade-Grown," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170215, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea14:170215
    DOI: 10.22004/ag.econ.170215
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    File URL: http://ageconsearch.umn.edu/record/170215/files/CBB-AAEA%202014-7-26.pdf
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    References listed on IDEAS

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    1. Sanchirico, James N. & Wilen, James E., 1999. "Bioeconomics of Spatial Exploitation in a Patchy Environment," Journal of Environmental Economics and Management, Elsevier, vol. 37(2), pages 129-150, March.
    2. Leigh Tesfatsion & Kenneth L. Judd (ed.), 2006. "Handbook of Computational Economics," Handbook of Computational Economics, Elsevier, edition 1, volume 2, number 2, 00.
    3. John M. Antle & Susan M. Capalbo, 2010. "Adaptation of Agricultural and Food Systems to Climate Change: An Economic and Policy Perspective," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(3), pages 386-416.
    4. Paul Ferraro & Toshihiro Uchida & Jon Conrad, 2005. "Price Premiums for Eco-friendly Commodities: Are ‘Green’ Markets the Best Way to Protect Endangered Ecosystems?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(3), pages 419-438, November.
    5. John H. Miller & Scott E. Page, 2007. "Social Science in Between, from Complex Adaptive Systems: An Introduction to Computational Models of Social Life," Introductory Chapters, in: Complex Adaptive Systems: An Introduction to Computational Models of Social Life, Princeton University Press.
    6. Barham, Bradford L. & Weber, Jeremy G., 2012. "The Economic Sustainability of Certified Coffee: Recent Evidence from Mexico and Peru," World Development, Elsevier, vol. 40(6), pages 1269-1279.
    7. Nigel Gilbert & Pietro Terna, 2000. "How to build and use agent-based models in social science," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 1(1), pages 57-72, March.
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    Cited by:

    1. Hernandez-Aguilera, Juan N. & Gómez, Miguel I. & Rodewald, Amanda D. & Rueda, Ximena & Anunu, Colleen & Bennett, Ruth & Schindelbeck, Robert R. & van Es, Harold M., 2015. "Impacts of smallholder participation in high-quality coffee markets: The Relationship Coffee Model," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205650, Agricultural and Applied Economics Association.

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    Keywords

    Crop Production/Industries; Environmental Economics and Policy; Resource /Energy Economics and Policy;

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