Cite as:
Castro, L.M.; Calvas, B.; Hildebrandt, P. &amp; Knoke, T. (2012): <b>Avoiding the loss of shade coffee plantations: how to derive conservation payments for risk-averse land-users</b>. <i>Agroforestry Systems</i> <b>online</b>, online.

Resource Description

Title: Avoiding the loss of shade coffee plantations: how to derive conservation payments for risk-averse land-users
FOR816dw ID: 1108
Publication Date: 2012-08-11
License and Usage Rights:
Resource Owner(s):
Individual: Luz Maria Castro
Individual: Baltazar Calvas
Individual: Patrick Hildebrandt
Individual: Thomas Knoke
We usually have only limited knowledge about the economic consequences of land-use decisions, thus they are uncertain. We analyze the implications of this uncertainty on conservation payments (CP) to preserve wildlife-friendly shade coffee production in southwest Ecuador, when conversion to maize is the most profitable alternative. Our objective is twofold: First, we analyze the consequences of<br/> applying Stochastic Dominance (SD) to derive CP, an approach making only minimal assumptions about the preferences of farmers. Second, we investigate the effects of land-use diversification to reduce CP by allowing for shade coffee on part of a landholding, and<br/> maize production on what remains. CP derived by SD turned out to be at least twice the amount calculated by an alternative method which maximizes a concave utility function?US$ 166 to US$ 294 ha-1 year-1 instead of US$ 86 ha-1 year-1. Given this result, we<br/> doubt that the assumptions underlying SD are reasonable for farmers, who are known to be riskaverse. Allowing for land-use diversification has a significant impact on CP. The optimal portfolio share of shade coffee is 27 % and for maize 73 % for<br/> moderately risk-averse farmers?without any CP. A larger share of shade coffee is preferable for strongly risk-averse farmers?51 and 49 % maize. The amount of CP necessary to encourage the expansion of shade coffee to 75 %is US$ 40 ha-1 year-1 (for moderately<br/> risk-averse) and US$ 19 ha-1 year-1 (for strongly risk-averse farmers). Stimulating diversification may thus help to significantly reduce CP necessary to preserve less profitable agroforestry options.
| Biodiversity conservation | Agroforestry | conservation payments | uncertainty | diversification | mean–variance | stochastic dominance |
Literature type specific fields:
Journal: Agroforestry Systems
Volume: online
Page Range: online
Metadata Provider:
Individual: Thomas Knoke
Online Distribution:
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