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"Fair" policies for the coffee trade - protecting people or biodiversity?

Kitti, Mitri; Heikkilä, Jaakko and Huhtala, Anni (2006) "Fair" policies for the coffee trade - protecting people or biodiversity? MTT Discussion Papers, no. 7. MTT Agrifood Research Finland.

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Summary

We investigate the role that economic instruments can play in the eradication of poverty and preservation of biodiversity in agroforestry management in coffee production. Most of the world's coffee producers live in poverty and manage agroecosystems in regions that culturally and biologically are among the most diverse on the globe. Despite the relatively recent finding that bees can augment pollination and boost coffee crop yields substantially, the short-term revenues to be had from intense monoculture drive land-use decisions that destroy forest strips serving as habitats for pollinating insects. Our study investigates the possibility of multiple equilibria in the adoption of technology in coffee production; farmers specialize in environmentally detrimental (sun-grown) or sustainable (shade-grown) farming or both practices co-exist. We calibrate an empirical model to characterize the equilibria and investigate the ecological and economic impacts of alternative policy instruments, among these protection fees, price premiums and a minimum wage.


EPrint Type:Report
Keywords:coffee, biodiversity, price premium, minimum wage, protection fee
Subjects: Food systems > Markets and trade
Research affiliation: Finland > Other organizations
Finland > MTT Agrifood Research
Related Links:http://www.mtt.fi
Deposited By: Koistinen, Riitta
ID Code:14830
Deposited On:09 Oct 2008
Last Modified:12 Apr 2010 07:38
Document Language:English
Status:Published
Refereed:Not peer-reviewed

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