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

Resources for the Future Discussion Paper No. 05-61

38 Pages Posted: 21 Jan 2006

See all articles by Michael B. Batz

Michael B. Batz

Resources for the Future

H. J. Albers

Oregon State University - Applied Economics/FES

Beatriz Ávalos-Sartorio

affiliation not provided to SSRN

Allen Blackman

Inter-American Development Bank (IDB)

Date Written: December 2005

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.

Keywords: coffee farming, decision analysis, numerical modeling, Monte Carlo, price variability

JEL Classification: O13, Q17, Q12, Q23, Q24

Suggested Citation

Batz, Michael B. and Albers, Heidi J. and Ávalos-Sartorio, Beatriz and Blackman, Allen, Shade-Grown Coffee: Simulation and Policy Analysis for Coastal Oaxaca, Mexico (December 2005). Resources for the Future Discussion Paper No. 05-61. Available at SSRN: https://ssrn.com/abstract=877315 or http://dx.doi.org/10.2139/ssrn.877315

Michael B. Batz (Contact Author)

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States
202-328-5020 (Phone)
202-328-5137 (Fax)

HOME PAGE: http://www.rff.org

Heidi J. Albers

Oregon State University - Applied Economics/FES ( email )

RIchardson 336
Corvallis, OR 97331
United States

Beatriz Ávalos-Sartorio

affiliation not provided to SSRN

Allen Blackman

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

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