The Price of Faith: Economic Costs and Religious Adaptation in Sub-Saharan Africa

How do economic costs affect religious choices, and how do religious institutions adapt to economic realities? We study the Seventh-Day Adventist (SDA) church in Sub-Saharan Africa, which prohibits production of tobacco, coffee, and tea, creating salient opportunity costs for potential members in areas suitable for these crops. We construct a measure of SDA membership opportunity cost that varies over time and space based on local crop suitability and export prices. Using church administrative data and member surveys, we find that increased opportunity costs lead to lower membership growth and lower satisfaction with the church among existing members. The church responds by establishing new educational and health institutions and reducing emphasis on "healthy living" religious tenets. These findings reveal how religious organizations can show striking flexibility in balancing tradition and adaptation when faced with economic pressures. Our study provides new insights into the microeconomics of cultural change, as mediated by religious institutions.