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Counterproductive Counternarcotic Strategies?
Author(s) -
Andersson Camilla I.M.
Publication year - 2013
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1093/ajae/aat009
Subject(s) - sharecropping , opium poppy , opium , poppy , incentive , economics , unintended consequences , agricultural economics , business , natural resource economics , development economics , agriculture , market economy , geography , political science , law , archaeology
We model the economic incentives surrounding opium poppy cultivation in Afghanistan. Specifically, we examine the impact of eradication policies when opium is used as a means of obtaining credit, and when the crops are cultivated in sharecropping arrangements. The analysis suggests that when perfect credit markets are available, an increased risk of eradication will lead to less land being allocated to opium poppy. However, when opium is used as a means of obtaining credit, an eradication policy can rather increase land under poppy cultivation. Furthermore, the unintended effects of eradication can be augmented in sharecropping arrangements.