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This research delves into the effectiveness and efficiency of anti-drug policies against coca cultivation. The study employs a hypothetical survey-based experiment to evaluate risk levels, relative profit of alternatives, and behavioral factors impacting coca cultivation. Insights on the morality, social norms, and policy implications are elucidated. Findings reveal that decreased risk levels have a more pronounced impact on reducing coca cultivation than increasing relative profits of alternatives. Additionally, the study uncovers that the marginal cost of eradication is higher than that of alternative development, and there exists a surplus in the potential number of coca farmers. This research recommends exploring alternative policies for combatting coca cultivation.
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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
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
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