ECONOMICS OF LAND USE DYNAMICS IN TWO MEXICAN COFFEE AGROFORESTS: IMPLICATIONS FOR THE ENVIRONMENT AND INEQUALITY

Abstract

<span lang="EN-US">L</span><span lang="EN-US">and use and land cover change have wide ranging implications for the environment and human welfare. This study analyzes both landscape and parcel level data to assess the causes and extent of deforestation in two Mexican coffee agroforests, as well as the likely environmental and welfare effects of policies designed to reduce tree cover loss. We find that shade coffee growers in Atzalan exhibit a relatively high elasticity of substitution between agricultural outputs: in response to low coffee prices, they have predominantly cleared their agroforestry parcels for production of tree crops. Shade coffee growers in Zozocolco exhibit a relatively low elasticity of substitution: agroforests were mostly either augmented with allspice trees or abandoned. Our policy simulations show that price supports for shade coffee would have larger effects on canopy preservation and welfare in Atzalan, even though Zozocolco is more marginalized.</span>