Can Shade-Grown Coffee Help Tropical Biodiversity?

Kent D. Messer
Department of Applied Economics & Management, Cornell University, Warren Hall, Ithaca, NY 14853-7801;
kdm22@cornell.edu

Matthew J. Kotchen
Department of Economics and School of Natural Resources & Environment,
University of Michigan, 430 E. University Ave., Ann Arbor, MI 48109; mkotchen@umich.edu

Michael R. Moore School of Natural Resources & Environment, University of Michigan,
430 E. University Ave., Ann Arbor, MI 48109; micmoore@umich.edu

Abstract
This paper studies the market for shade-grown coffee as an approach to tropical biodiversity conservation. Shade-grown coffee farms provide important habitat for a wide array of biodiversity. In particular, recent studies show that these farms serve as habitat for sixty-six species of neotropical birds that are listed as threatened or endangered by the IUCN and CITES. Initial sections of this paper provide a brief history of shade-grown coffee, describe the ecologi-cal aspects of the production process, and examine the current market for shade-grown coffee. Results are then reported from an original study of consumer behavior in the market for shade-grown coffee. The study suggests that consumers are not willing to sacrifice coffee taste for environmental concern. Income, choice of retail venue, and degree of environmental concern are influential factors when deciding to purchase shade-grown instead of conventional gourmet coffee. Finally, even in cafés where shade-grown coffee was actively marketed, the majority of consumers not purchasing the coffee were unaware of the shade-grown option. Can Shade-Grown Coffee Help Conserve Tropical Biodiversity? A Market Perspective.

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