Table 3. Economic impact of deforestation on coffee sites and overall welfare. Scenarios are as in Fig. 3; all monetary values are in USD.


Average net revenue in coffee-growing area†
Total net revenue in coffee-growing area (192 ha)
Average pollination value of deforested area‡
Total net revenue of alternative crops in deforested area
Net welfare effect in overall area (292 ha)
Marginal net welfare effect in overall area (292 ha)
INDONESIA
Deforested area (ha)
($/ha)
(%)
($)
($/ha)
($)
($)
($)
0
85
100
16,347
0
0
16,347
0
32
79
93
15,214
35
5120
20,334
3987
58
76
89
14,510
31
9280
23,790
3456
78
73
85
13,928
31
12,480
26,408
2618
100§
61
72
11,697
47
16,000
27,697
1289
ECUADOR
Deforested area (ha)







0
36
100
7005
0
0
7005
0
32
30
83
5825
36
3456
9281
2276
58
27
73
5092
33
6264
11,356
2075
78
23
64
4485
32
8424
12,909
1554
100§
11
30
2111
49
10,800
12,911
2

†Mean net revenue per hectare in the 192-ha coffee-growing area (see Tables 1 and 2) declines with increasing distance to the forest.
‡Calculated by assigning the reduction in total net coffee revenues to the number of hectares deforested.
§In the case where the forest is completely destroyed, we assumed that coffee sites received only minor pollination services from other forest patches within about 1000 m.