A survey-based choice experiment on coca cultivation

Marcela Ibanez and Fredrik Carlsson
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Marcela Ibanez: University of Göttingen

No 17, Courant Research Centre: Poverty, Equity and Growth - Discussion Papers from Courant Research Centre PEG

Abstract: From 1997 to 2005, an astonishing 5,200 million USD was invested to reduce cocaine production in Colombia, the world’s main cocaine producer. However, little is known about the effectiveness of policies targeting coca cultivation. This paper uses a surveybased experiment to evaluate the effects of the two main policies: eradication and alternative development programs. Our results support Becker’s (1968) model of crime participation and in addition shed light on other non-monetary factors that affect the coca cultivation decision: religion, legitimacy, remoteness, and poverty are found to be important. We find that coca cultivation is inelastic to increases in perceived risk and relative profit so eradication and alternative development would have a rather small effect on coca cultivation. A simple simulation exercise predicts that investing additional hundred thousand dollars in eradication decreases coca cultivation in only 1.5%.

Keywords: illegal drugs; choice experiment; Colombia; crime (search for similar items in EconPapers)
JEL-codes: G11 K42 Z12 Z13 (search for similar items in EconPapers)
Date: 2009-11-25
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Journal Article: A survey-based choice experiment on coca cultivation (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:got:gotcrc:017

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