Cocaine Production and the Provision of Household Services: Evidence from Colombian Coca Farmers

Abstract

This paper analyzes how coca cultivation affects the provision of basic household services in Colombia. In particular, I examine how different levels of government responded to an exogenous upsurge in coca cultivation in 1995. I use data from De- mographic Health Surveys to compare Colombian households’ access to electricity (overseen by the federal government) and water (overseen by municipal govern- ments) in coca growing areas relative to non-growing areas. I use both standard and generalized difference-in-differences models. My results indicate that after coca cultivation increased, electricity coverage increased by 7 percentage points more in coca growing departments than non-growing departments. In contrast, there were no differential trends in access to piped water between growing and non-growing departments.