IDEAS home Printed from
   My bibliography  Save this paper

Trade-Offs Between Economic Efficiency And Contamination By Coffee Processing A Bioeconomic Model At The Watershed Level In Honduras


  • Barbier, Bruno
  • Hearne, Robert R.
  • Gonzalez, Jose Manuel
  • Nelson, Andy
  • Castaneda, Orlando Mejia


In Honduras, traditional coffee processing is the cause of two major problems: poor coffee quality and contaminated water. In this paper we present a method that determines the trade-off between economic efficiency and contamination in a Honduran sub-watershed. The method is a bioeconomic model based on mathematical programming that stimulates the functioning of the interlinked economic and ecological processes in the sub-watershed. We compare various scenarii where the model is given the possibility of replacing traditional coffee processing plants with a network of improved ecological plants. For different levels of contamination the model determines the optimal location and size of new coffee processing plants along river streams by minimizing transport, variable and fixed costs. The restrictions of the system are the volume of wet coffee to be processed, the available stream water, and in the alternative scenarii, investment capital and contaminant concentration in the river. We apply the method to a typical sub-watershed in the hillsides of western Honduras and show that coffee quality can be improved and contamination can be reduced substantially at a relatively low cost.

Suggested Citation

  • Barbier, Bruno & Hearne, Robert R. & Gonzalez, Jose Manuel & Nelson, Andy & Castaneda, Orlando Mejia, 2003. "Trade-Offs Between Economic Efficiency And Contamination By Coffee Processing A Bioeconomic Model At The Watershed Level In Honduras," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25930, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae03:25930

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
    2. Perron, Pierre, 1997. "Further evidence on breaking trend functions in macroeconomic variables," Journal of Econometrics, Elsevier, vol. 80(2), pages 355-385, October.
    3. Johansen, Soren, 1992. "Determination of Cointegration Rank in the Presence of a Linear Trend," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(3), pages 383-397, August.
    4. Granger, C. W. J., 1988. "Some recent development in a concept of causality," Journal of Econometrics, Elsevier, vol. 39(1-2), pages 199-211.
    5. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
    6. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    7. Hallam, David & Zanoli, Raffaele, 1993. "Error Correction Models and Agricultural Supply Response," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 20(2), pages 151-166.
    8. Mushtaq, Khalid & Dawson, P. J., 2002. "Acreage response in Pakistan: a co-integration approach," Agricultural Economics, Blackwell, vol. 27(2), pages 111-121, August.
    Full references (including those not matched with items on IDEAS)


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae03:25930. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.