Do Tropical Forests Provide A Safety Net? Income Shocks And Forest Extraction In Malawi
AbstractWe use seasonal household data on income shocks and forest extraction to study how households in Malawi use forests to cope with income shortfalls. In particular, we study household response to receipt of a positive income shock delivered in the form of a technology assistance package. We estimate a random-effects model of forest extraction to examine whether household forest use is responsive to income shocks received in a prior period. We also measure the extent to which households subsequently save out of transitory income. Findings indicate that forest extraction by asset-poor households was more responsive to income shocks than forest extraction by better-off households. Findings also suggest households save out of transitory income, and in the process accumulate physical assets that may reduce their dependence on forests for weathering subsequent income shocks. Results show how policies aimed at poverty alleviation among those living adjacent to tropical forests can also alleviate forest pressure.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2003 Annual meeting, July 27-30, Montreal, Canada with number 22228.
Date of creation: 2003
Date of revision:
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Resource /Energy Economics and Policy;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fafchamps, Marcel & Udry, Christopher & Czukas, Katherine, 1998.
"Drought and saving in West Africa: are livestock a buffer stock?,"
Journal of Development Economics,
Elsevier, vol. 55(2), pages 273-305, April.
- Marcel Fafchamps & Chris Udry & Katherine Czukas, . "Drought and Saving in West Africa: Are Livestock a Buffer Stock?," Working Papers 97013, Stanford University, Department of Economics.
- Foster, Andrew D, 1995. "Prices, Credit Markets and Child Growth in Low-Income Rural Areas," Economic Journal, Royal Economic Society, vol. 105(430), pages 551-70, May.
- Stefan Dercon, 1996.
"Wealth, risk and activity choices: cattle in Western Tanzania,"
Economics Series Working Papers
WPS/1996-08, University of Oxford, Department of Economics.
- Dercon, Stefan, 1998. "Wealth, risk and activity choice: cattle in Western Tanzania," Journal of Development Economics, Elsevier, vol. 55(1), pages 1-42, February.
- Stefan Dercon, 1996. "Wealth, risk and activity choices: cattle in Western Tanzania," CSAE Working Paper Series 1996-08, Centre for the Study of African Economies, University of Oxford.
- Paxson, Christina H, 1992. "Using Weather Variability to Estimate the Response of Savings to Transitory Income in Thailand," American Economic Review, American Economic Association, vol. 82(1), pages 15-33, March.
- Udry, Christopher, 1994. "Risk and Insurance in a Rural Credit Market: An Empirical Investigation in Northern Nigeria," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 495-526, July.
- Rose, Elaina, 2001. "Ex ante and ex post labor supply response to risk in a low-income area," Journal of Development Economics, Elsevier, vol. 64(2), pages 371-388, April.
- Barrett, C. B. & Reardon, T. & Webb, P., 2001. "Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications," Food Policy, Elsevier, vol. 26(4), pages 315-331, August.
- Coomes, Oliver T. & Barham, Bradford L. & Takasaki, Yoshito, 2004. "Targeting conservation-development initiatives in tropical forests: insights from analyses of rain forest use and economic reliance among Amazonian peasants," Ecological Economics, Elsevier, vol. 51(1-2), pages 47-64, November.
- Place, Frank & Otsuka, Keijiro, 1997. "Population, land tenure, and natural resource management: the case of customary land area in Malawi," EPTD discussion papers 27, International Food Policy Research Institute (IFPRI).
- Udry, Christopher, 1995. "Risk and Saving in Northern Nigeria," American Economic Review, American Economic Association, vol. 85(5), pages 1287-1300, December.
- Kinsey, Bill & Burger, Kees & Gunning, Jan Willem, 1998. "Coping with drought in Zimbabwe: Survey evidence on responses of rural households to risk," World Development, Elsevier, vol. 26(1), pages 89-110, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.