Abstract
This study analyzes the participation decision and income impacts of fair-trade coffee certification on small-scale coffee producers in the Araku valley in India using panel data for 183 households and endogenous-switching and quantile regression methods. The results show that fair trade certification has a positive effect on income; the income of certified farmers is 17 percent higher on average than the income of uncertified coffee producers. Furthermore, fair trade certification has a “bottom of the pyramid” effect in that the largest income gains accrue to farmers in the poorer quantiles.
Highlights
This study analyzes the participation decision and income impacts of fair-trade coffee certification on small-scale coffee producers in the Araku valley in India using panel data for 183 households and endogenous-switching and quantile regression methods
The results show that fair trade certification has a positive effect on income; the income of certified farmers is 17 percent higher on average than the income of uncertified coffee producers
The results show that fair trade certification increased incomes for certified coffee farmers relative to farmers who did not obtain certification
Summary
This study analyzes the participation decision and income impacts of fair-trade coffee certification on small-scale coffee producers in the Araku valley in India using panel data for 183 households and endogenous-switching and quantile regression methods. The results show that fair trade certification has a positive effect on income; the income of certified farmers is 17 percent higher on average than the income of uncertified coffee producers.
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