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Is There a Nexus between Poverty and Environment in Rural India?

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  • Bhattacharya, Haimanti
  • Innes, Robert
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    Abstract

    This paper presents an empirical analysis of the relationship between rural poverty and environmental change using district-level data from South, Central and West India. Unlike prior works, this study puts the hypothesis of bi-directional link between poverty and environment to econometric test. Environmental change is measured using a satellite-based vegetation index. Consonant with the dominant view in the literature, the evidence suggests that rural poverty spur vegetation degradation. The results also indicate that the vegetation degradation spurs rural poverty but the magnitude of the effect varies across sub regions classified on the basis of geographic and climatic factors. Thus these results provide evidence in support of existence of a poverty-environment nexus in rural India.

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    File URL: http://purl.umn.edu/21201
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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21201.

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    Date of creation: 2006
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    Handle: RePEc:ags:aaea06:21201

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    Keywords: Food Security and Poverty;

    References

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    1. Raghbendra Jha & Bagala Biswal & Urvashi D. Biswal, 2001. "An Empirical Analysis of the Impact of Public Expenditures on Education and Health on Poverty in Indian States," ASARC Working Papers, The Australian National University, Australia South Asia Research Centre 2001-05, The Australian National University, Australia South Asia Research Centre.
    2. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
    3. Masako Ikefuji & Ryo Horii, 2005. "Wealth Heterogeneity and Escape from the Poverty-Environment Trap," Development and Comp Systems 0505001, EconWPA.
    4. Jha, Raghbendra, 2002. "Reducing Poverty and Inequality in India: Has Liberalization Helped?," Departmental Working Papers, The Australian National University, Arndt-Corden Department of Economics 2002-04, The Australian National University, Arndt-Corden Department of Economics.
    5. Heath, John & Binswanger, Hans, 1996. "Natural resource degradation effects of poverty and population growth are largely policy-induced: the case of Colombia," Environment and Development Economics, Cambridge University Press, vol. 1(01), pages 65-84, February.
    6. Dasgupta, Susmita & Deichmann, Uwe & Meisner, Craig & Wheeler, David, 2003. "The poverty/environment nexus in Cambodia and Lao People's Democratic Republic," Policy Research Working Paper Series 2960, The World Bank.
    7. Reardon, Thomas & Vosti, Stephen A., 1995. "Links between rural poverty and the environment in developing countries: Asset categories and investment poverty," World Development, Elsevier, vol. 23(9), pages 1495-1506, September.
    8. Esmaiel Abounoori & Patrick McCloughan, 2003. "A simple way to calculate the Gini Coefficient for grouped as well as ungrouped data," Applied Economics Letters, Taylor & Francis Journals, vol. 10(8), pages 505-509.
    9. Swinton, Scott M. & Escobar, German & Reardon, Thomas, 2003. "Poverty and Environment in Latin America: Concepts, Evidence and Policy Implications," World Development, Elsevier, vol. 31(11), pages 1865-1872, November.
    10. Escobal, Javier & Aldana, Ursula, 2003. "Are Nontimber Forest Products the Antidote to Rainforest Degradation? Brazil Nut Extraction in Madre De Dios, Peru," World Development, Elsevier, vol. 31(11), pages 1873-1887, November.
    11. Kanchan Chopra & S. Gulati, 1997. "Environmental degradation and population movements: The role of property rights," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 9(4), pages 383-408, June.
    12. Banerjee, Abhijit & Somanathan, Rohini, 2007. "The political economy of public goods: Some evidence from India," Journal of Development Economics, Elsevier, vol. 82(2), pages 287-314, March.
    13. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
    14. Bahamondes, Miguel, 2003. "Poverty-Environment Patterns in a Growing Economy: Farming Communities in Arid Central Chile, 1991-99," World Development, Elsevier, vol. 31(11), pages 1947-1957, November.
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    Cited by:
    1. Mukherjee, Sacchidananda & Chakraborty, Debashis, 2009. "Is there any relationship between Environmental Quality Index, Human Development Index and Economic Growth? Evidences from Indian States," MPRA Paper 17207, University Library of Munich, Germany.

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