Summary
We investigate the welfare and productivity implications of private sustainability standards in the coffee sector in Uganda. We use cross-sectional household survey data and an instrumental variable method with instruments that pass weak identification and over-identification restrictions. We find that triple Utz-Rainforest Alliance-4C certification increases income, and land and labour productivity, and reduces poverty. Double Fairtrade-Organic certification is found to be associated with higher producer prices but results in lower land and labour productivity, and thereby fails to increase producer income and contribute to poverty reduction. We conclude that private sustainability standards do not always live up the expectations they create towards consumers.
Abstract obtained with permission, to access the full paper click here: https://www.tandfonline.com/doi/abs/10.1080/00220388.2017.1327663?journalCode=fjds20