INESAD
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By:
Javier Aliaga Lordemann and Adriana Caballero Caballero
Abstract
This study analyzes the sustainable production cost, integrating the recovery of agricultural heritage (COSPH), for quinoa cultivation in the Bolivian High Plateau (Altiplano), seeking to answer: How much does it cost to make quinoa production sustainable over time in Bolivia? And, How does this change when considering agricultural heritage conservation? Specifically, the study evaluates how good agricultural practices (GAP) can mitigate climate change impacts and whether they are cost-effective, integrating the costs of agricultural heritage, which are particularly important for the quinoa real (royal quinoa) crop in Bolivia.
Methodologically, the research combines a microeconomic model of imperfect competition calibrated for quinoa — capturing price differentiation based on sustainability and heritage conservation — with the NL-CROP model (Non-Linear Crop Optimization Model), which simulates non-linear interactions between climate, soil, and farming practices.
Key findings show that GAP significantly reduce yield losses: under moderate climate conditions, productivity declines decrease from 5-7% to 1.8-2%, while in extreme events, losses drop from 16-30% to 2.5-6.2%, attributed to sustainable soil management. GAP remain viable in scenarios with up to two to three standard deviations, where profit margins cover additional costs. However, in severe crises (50% yield losses), negative margins (-4.7%) make agricultural insurance necessary (premiums of 7-10%), as well as tailored policies to balance climate adaptation with smallholders’ economic viability.
When heritage conservation costs are included (COSPH), results show improved resilience (yield loss reduced to 10.5% under a moderate climate scenario) at a moderate additional cost (5.75% compared to 5%), suggesting that preserving agroecological heritage contributes to long-term sustainability. These findings highlight the strategic role of combining sustainable agriculture with the protection of cultural landscapes in vulnerable highland farming in Bolivia.
JEL code: O13, Q12, Q15, Q18, Q54
Keywords: sustainable production costs, agricultural heritage, quinoa economics, agriculture and environment, small farmers, climate change adaptation.
