The Pie: An Economics Podcast When Religion Meets the Marketplace: Faith, Farming, and Trade-Offs
Jul 8, 2025
In this discussion, Eduardo Montero, an Assistant Professor at the Harris School of Public Policy, dives into the economic consequences of religious prohibitions, particularly within the Seventh-day Adventist community. He reveals how restrictions on farming certain crops impact local economies in Sub-Saharan Africa, creating intriguing trade-offs for believers. Montero also explores the adaptability of religious tenets amid economic pressure, emphasizing how communal bonds transform in the face of shared sacrifices while pondering the interplay of faith and market dynamics.
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Seventh-day Adventist Crop Prohibitions
- Seventh-day Adventists prohibit production and consumption of coffee, tea, and tobacco due to health beliefs.
- In regions where these are key cash crops, such prohibitions impose significant economic trade-offs for members.
Data Linking Religion and Economy
- Researchers combined detailed data on SDA membership and local crop production/prices in Sub-Saharan Africa.
- This data lets them estimate the opportunity cost of joining the church based on forgone agricultural revenue.
Church Adjusts to Economic Costs
- Higher local opportunity costs from prohibited crops reduce SDA membership growth and member satisfaction.
- The church offsets costs by increasing social services and softening sermons on prohibitions.
