Environmental and socioeconomic impact of growing certified organic coffee in Colombia

Marcela Ibañez ()
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Marcela Ibañez: Courant Research Center, Poverty, Equity and Growth

No 201125, Working Papers from Latin American and Caribbean Environmental Economics Program

Abstract: Agricultural production is an important source of income and employment for developing countries, yet it is the cause of serious environmental problems. Eco-labels appear as a promising alternative for reducing the environmental effect of agriculture and generating a higher income for the rural poor. This paper aims at investigating the environmental and socioeconomic impact of organic certification for coffee producers in rural Colombia. To identify the environmental and socioeconomic impacts of certification, we use propensity score matching (PSM). We find that participants who were already using organic technologies self-select into certification schemes. Yet, we find that there are positive environmental effects of certification. Certified organic producers use significantly more organic fertilizer, adopt more sustainable technologies (e,g., biological pest control, reuse of pulp, control water pollution) and decrease the use of agrochemicals than producers who were equally likely to be certified but who did not get certified. The positive environmental effects from certification are not being reflected in higher returns for the producers. The price premiums are just enough to compensate the lower productivity of organic technologies.

Pages: 22 pages
Date: 2011, Revised 2011
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