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

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Listed:
  • 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.

Suggested Citation

  • Blackman, Allen & Albers, Heidi & Batz, Michael & Ávalos-Sartorio, Beatriz, 2005. "Shade-Grown Coffee: Simulation and Policy Analysis for Coastal Oaxaca, Mexico," RFF Working Paper Series dp-05-61, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-05-61
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    File URL: http://www.rff.org/RFF/documents/RFF-DP-05-61.pdf
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    References listed on IDEAS

    as
    1. Kenneth J. Arrow & Anthony C. Fisher, 1974. "Environmental Preservation, Uncertainty, and Irreversibility," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 4, pages 76-84, Palgrave Macmillan.
    2. Nestel, David, 1995. "Coffee in Mexico: international market, agricultural landscape and ecology," Ecological Economics, Elsevier, vol. 15(2), pages 165-178, November.
    3. 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.
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    Cited by:

    1. Atallah, Shady S. & Gómez, Miguel I. & Jaramillo, Juliana, 2018. "A Bioeconomic Model of Ecosystem Services Provision: Coffee Berry Borer and Shade-grown Coffee in Colombia," Ecological Economics, Elsevier, vol. 144(C), pages 129-138.
    2. Blackman, Allen & Ã valos-Sartorio, Beatriz & Chow, Jeffrey, 2008. "Land Cover Change in Mixed Agroforestry: Shade Coffee in El Salvador," RFF Working Paper Series dp-08-25-efd, Resources for the Future.
    3. 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).
    4. Villegas, Laura, 2017. "Shady Business: Why do Puerto Rican Coffee Farmers Adopt Conservation Agriculture Practices?," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259136, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    coffee farming; decision analysis; numerical modeling; Monte Carlo; price variability;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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