A Framework for Evaluating the Impact of Pricing Policies for Cocoa and Coffee in Cote d'Ivoire

Pravin Trivedi and Takamasa Akiyama

The World Bank Economic Review, 1992, vol. 6, issue 2, 307-30

Abstract: This article presents an approach to evaluating pricing policies for perennial crops. A flexible computational model is developed, which incorporates important features of perennial crop production that are not captured by other (usually static) frameworks. This framework produces sensible and plausible scenarios for pricing cocoa and coffee in the Ivory Coast, as well as descriptions of revenue tradeoffs. Key issues arise from considering major changes in the rules used to set domestic producer prices. An unambiguously best policy is not determined, but several policies improve substantially on the present situation. Most of these alternatives indicate the desirability of lowering the tax on coffee relative to cocoa. Copyright 1992 by Oxford University Press.

Date: 1992
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