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A Choice Experiment on Coca Cultivation

A Choice Experiment on Coca Cultivation. 13 million people consume cocaine Coca production is concentrated in Andean countries War against drugs 5.2 billion dollars were invested in Colombia between 1997 and 2005, cocaine production increased from 350 to 640 ton

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A Choice Experiment on Coca Cultivation

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  1. A Choice Experiment on Coca Cultivation • 13 million people consume cocaine • Coca production is concentrated in Andean countries • War against drugs • 5.2 billion dollars were invested in Colombia between 1997 and 2005, cocaine production increased from 350 to 640 ton • Eradication and Alternative Development

  2. Objective • Measure effectiveness and efficiency of anti-drug policies against coca cultivation using a hypothetical survey based experiment. • Risk levels • Relative profit of the alternative • Understand the effect of behavioral factors • Morality: Lind et al 1985, MJT. • Social Norms • Legalicy

  3. Policy Implications • Hectares with coca decrease more at increases in risk than increases in relative profit of the alternative • Marginal cost of eradication ($650) is higher than marginal cost of alternative development ($350) • Potential number of coca farmers is larger than actual number of coca farmers • Alternative policies could be used

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