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Do Tropical Forests Provide Natural Insurance? The Microeconomics of Non-Timber Forest Product Collection in the Brazilian Amazon

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Author Info
Subhrendu K. Pattanayak
Erin O. Sills

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Abstract

Tropical forests may contribute to the well-being of local people by providing a form of ``natural insurance.’ ’ We draw on microeconomic theory to conceptualize a model relating agricultural risks to collection of non-timber forest products. Forest collection trips are positively correlated with both agricultural shocks and expected agricultural risks in an event-count model of survey data from the Brazilian Amazon. This suggests that households rely on forests to mitigate agricultural risk. Forest product collection may be less important to households with other consumption-smoothing options, but its importance is not restricted to the poorest households.

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File URL: http://le.uwpress.org/cgi/reprint/77/4/595
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Publisher Info
Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 77 (2001)
Issue (Month): 4 ()
Pages: 595-612
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Handle: RePEc:uwp:landec:v:77:y:2001:i:4:p:595-612

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Related research
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Find related papers by JEL classification:
Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

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  1. Sarker, Debnarayan & Das, Nimai, 2006. "A Study of Economic Outcome of Joint Forest Management Programme in West Bengal: The Strategic Decisions between Government and Forest Fringe Community," MPRA Paper 14875, University Library of Munich, Germany, revised 2007. [Downloadable!]
    Other versions:
  2. Das, Nimai & Sarker, Debnarayan, 2008. "Benefit Relationship between Owner and User of Common Pool Resource: Evidence from Joint Forest Management Programme in West Bengal," MPRA Paper 15327, University Library of Munich, Germany. [Downloadable!]
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