Castro, L.M.; Calvas, B.; Hildebrandt, P. & 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
Contact:
email:
luces_c <at> yahoo.es
Ecuador
Individual:
Baltazar Calvas
Contact:
email:
bcalvas <at> utpl.edu.ec
Hans-Carl-von- Carlowitz-Platz 2
Fachgebiet für Waldinventur und nachhaltige Nutzung
85354, Freising
85354 Freising
Germany
email:
knoke <at> forst.tu-muenchen.de
Center of Life and Food Science Weihenstephan
Institute of Forest Management
Technische Universität München
Hans-Carl-von-Carlowitz-Platz 2
85354 Freising
Germany
Abstract:
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.
email:
knoke <at> forst.tu-muenchen.de
Center of Life and Food Science Weihenstephan
Institute of Forest Management
Technische Universität München
Hans-Carl-von-Carlowitz-Platz 2
85354 Freising
Germany
