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Friday, November 10, 2017 at 11:30am to 12:00am
Title: “The economics and ecology of shade-grown coffee”
Shade-grown coffee – or coffee produced under a canopy of trees - provides habitat for neotropical songbirds that contribute to pest control. In addition, this production system is associated with (1) lower use of chemical inputs, (2) higher quality coffee, but (3) lower yield. I formulate a dynamic optimization problem to model the grower's decision to convert land from conventional production to shade-grown production based on (1) yield, (2) reduced pest-control costs, (3) non-pest control costs, and (4) price premiums consumers might pay for higher-quality, sustainably-grown coffee.
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