Evaluating the economic impact of agroforestry on cocoa production: Evidence from Côte d'Ivoire

Abstract Côte d'Ivoire, the leading cocoa producer in the world, faces increasing challenges concerning the sustainability of its cocoa farming. Agroforestry is frequently proposed as a viable option to harmonize agricultural productivity with environmental sustainability. Nevertheless, limited empirical research has quantified its true economic impacts inside the Ivorian environment. This study aims to assess the influence of agroforestry on cocoa yields and agricultural income in Côte d’Ivoire. Primary data were collected from 228 cocoa producers across three major production zones (Bonon, Soubré, and Biankouma). To address observable and unobservable selection bias, Propensity Score Matching (PSM) and Endogenous Switching Regression (ESR) models were applied. These complementary approaches allow for robust causal inference regarding the effects of agroforestry compared to full-sun systems. The findings indicate that agroforestry substantially enhances agricultural income and productivity. The PSM estimates show an average yield increase of 116.68 kg/ha (approximately 22%) and an income gain of 128,341 FCFA/ha (around 25%) relative to full-sun systems. The ESR model confirms positive causal effects, revealing yield gains of 90.87 kg/ha (up to 36%) and income increases of 66,396 FCFA/ha (approximately 23%). Overall, agroforestry enhances the economic performance of cocoa farming systems. This study offers robust empirical evidence supporting agroforestry as a mechanism for the sustainable enhancement of cocoa producers' performance in Côte d'Ivoire.