A choice experiment on coca cropping

Abstract

Between 1997 and 2005, 5.2 billion USD were 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 evaluates the effects of the two main policies: eradication and alternative development. We measure the responsiveness of farmers to eradication and alternative development programs using a survey based experiment. 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. Social norms, legitimacy, and poverty are found to be affecting coca cultivation. We find that the responses are to a large extent consistent, and the model prediction of the proportion of farmer growing coca is accurate. We also illustrate how the results can be used to draw policy conclusions, but conclude that better information about the costs is needed.