nep-env New Economics Papers
on Environmental Economics
Issue of 2005‒08‒28
one paper chosen by
Francisco S.Ramos
Federal University of Pernambuco

  1. Poverty and the Environment-Exploring the Relationship between Household Incomes, Private Assets and Natural Assets By Urvashi Narain; Shreekant Gupta; Klaas vant Veld

  1. By: Urvashi Narain (Resources for the Future, Washington DC); Shreekant Gupta (Delhi School of Economics); Klaas vant Veld (University of Wyoming, Laramie)
    Abstract: Using purpose-collected survey data from 535 households in 60 different villages of the Jhabua district of India, this paper investigates the extent to which rural households depend on common-pool natural resources for their daily livelihood. Previous studies have found that resource dependence-- defined as the fraction of total income derived from common-pool resources--strongly decreases with income. Our study uncovers a more complex relationship. Firstly, for the subsample of households that use positive amounts of resources, we find that dependence follows a U-shaped relationship with income, declining at first but then increasing. Secondly, we find that the probability of being in the subsample of common-pool resource users follows an inverse U-shaped relationship with income - the poorest and richest households are less likely to collect resources than those with intermediate incomes. Resource use by the rich is therefore bimodal - either very high or--for the very rich households--zero. Thirdly, we find that resource dependence increases at all income levels with an increase in the level of common-pool biomass availability. The combination of these results suggests that the quality of natural resources matters to a larger share of the rural population than had previously been believed, common-pool resources contribute a significant fraction of the income not just of the desperately poor, but also of the relatively rich.
    Keywords: India, Madhya Pradesh, poverty, environment, common-pool natural resources,rural households
    JEL: Q2 D31 Q12 Q56 O13 I32
    Date: 2005–04
    URL: http://d.repec.org/n?u=RePEc:cde:cdewps:134&r=env

This nep-env issue is ©2005 by Francisco S.Ramos. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.