Paper Title:

Poverty And The Environment: Estimating The Effect Of Natural Resource Availability On Household Incomes In Rural India

Presenting Author: Urvashi Narain (Resources for the Future)
Coauthor 1: Shreekant Gupta
Coauthor 2: Klaas van 't Veld
Coauthor 3:
Our paper analyzes the effect of natural resource availability on household incomes by estimating the extent to which the stock of natural resources (forests, grazing lands, and groundwater) available to rural households affects their income from agriculture and other productive activities. This relationship has been ignored in the literature, which has treated poverty as the cause, not the effect, of environmental degradation. We estimate the latter effect using primary household-level and village-level data collected from 60 villages in the Indian state of Madhya Pradesh and by estimating a restricted profit function. We control for the endogeneity problem that would arise if we were to regress profit on contemporaneous values of household assets and natural resource stocks, by (i) using predetermined measures of these stocks; (ii) including measures of average village income in the regression equation.
Link to paper: Not available
Session / Day / Time 4D / Monday / 4:30 - 6:00 pm
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