seminari 19.11.2020 El departament  - 


Dijous, 3 de desembre de 2020
Webinar, a les 15.00 hores

Maarten Bosker
Erasmus University Rotterdam

Departmental Seminar: "Desarrollo alternativo _ illicit crop substitution and the price of legal alternatives" (with Sophie de Vries Robbé)

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Colombia is the world’s major producer of coca leaves used for the production of cocaine. An important pillar of Colombia’s efforts to curb the production of this illicit crop is to induce farmers to substitute coca for a viable legal alternative. In this paper we identify the extent to which farmers respond to variation in the price of five of the most promising legal alternatives when deciding how much coca to plant – coffee, sugar, palm oil, cocoa, and banana. We do this using a rich, spatially very detailed dataset that contains yearly information on the amount of coca grown in each of over 31,000 villages (veredas) in Colombia over the period 2001-2018. To identify our main effect of interest, we exploit exogenous variation in the prices of the five alternative legal export crops that we consider, in combination with detailed information about the soil and climatic suitability of each village for growing these legal alternatives, as well as for growing coca. We find that farmers in villages more suitable for growing coffee, palm oil and banana differentially respond to price increases of these particular legal alternatives by planting less coca. We discuss why we find this effect for these three crops only, and not for cocoa or sugar. Moreover, we provide evidence that these effects are confined to villages where coca grows well, and probe into the alleged important role of having good access to markets for the legal crop(s), or for coca (paste), in illicit crop substitution. 

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Departament d'Economia Aplicada
Edifici B Campus de la UAB
08193 Bellaterra
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