Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/331427 
Year of Publication: 
2025
Series/Report no.: 
Development Research Working Paper Series No. 7/2025
Publisher: 
Institute for Advanced Development Studies (INESAD), La Paz
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.
Subjects: 
sustainable production costs
agricultural heritage
quinoa economics
agriculture and environment
small farmers
climate change adaptation
JEL: 
O13
Q12
Q15
Q18
Q54
Document Type: 
Working Paper

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