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Counterproductive Counternarcotic Strategies?

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  • Camilla I.M. Andersson

Abstract

We model the economic incentives surrounding opium poppy cultivation 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 cultivated 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, an eradication policy can rather increase land under poppy cultivation. Furthermore, the unintended effects of eradication can be augmented in sharecropping arrangements. Copyright 2013, Oxford University Press.

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  • Camilla I.M. Andersson, 2013. "Counterproductive Counternarcotic Strategies?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(4), pages 917-931.
    • Handle: RePEc:oup:ajagec:v:95:y:2013:i:4:p:917-931
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    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    2. Jeffrey Clemens, 2008. "Opium in Afghanistan: Prospects for the Success of Source Country Drug Control Policies," Journal of Law and Economics, University of Chicago Press, vol. 51(3), pages 407-432, August.
    3. Braverman, Avishay & Stiglitz, Joseph E., 1986. "Landlords, tenants and technological innovations," Journal of Development Economics, Elsevier, vol. 23(2), pages 313-332, October.
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