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Smoothing Income Against Crop Flood Losses in Amazonia: Rain Forest or Rivers as a Safety Net

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  • Takasaki, Yoshito
  • Barham, Bradford L.
  • Coomes, Oliver T.

Abstract

This article examines the role of ex post labor supply in smoothing income in response to crop losses caused by large floods among riverine households in the Peruvian Amazon, where rich environmental endowments permit a variety of resource extractive activities and coping responses. The paper finds that households respond to crop losses primarily by intensifying fishing effort not by relying on gathering of non-timber forest products, hunting, or asset liquidation. This ex post labor adjustment helps to smooth total income against small crop losses but less well against large crop losses. Both relatively non-poor households with better fishing capital and poor young households with a physical labor advantage employ this natural insurance in rivers.

Suggested Citation

  • Takasaki, Yoshito & Barham, Bradford L. & Coomes, Oliver T., 2007. "Smoothing Income Against Crop Flood Losses in Amazonia: Rain Forest or Rivers as a Safety Net," Staff Papers 92147, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    • Handle: RePEc:ags:wisagr:92147
    DOI: 10.22004/ag.econ.92147
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    Cited by:

    1. Cotta, Jamie N., 2015. "Contributions of local floodplain resources to livelihoods and household income in the Peruvian Amazon," Forest Policy and Economics, Elsevier, vol. 59(C), pages 35-46.
    2. Filipski, Mateusz J. & Jin, Ling & Zhang, Xiaobo & Chen, Kevin Z., 2015. "Living like there’s no tomorrow: Saving and spending following the Sichuan earthquake:," IFPRI discussion papers 1461, International Food Policy Research Institute (IFPRI).
    3. Mya Sherman & James Ford & Alejandro Llanos-Cuentas & María José Valdivia, 2016. "Food system vulnerability amidst the extreme 2010–2011 flooding in the Peruvian Amazon: a case study from the Ucayali region," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(3), pages 551-570, June.
    4. Takasaki, Yoshito, 2011. "Do the Commons Help Augment Mutual Insurance Among the Poor?," World Development, Elsevier, vol. 39(3), pages 429-438, March.
    5. Mya Sherman & James Ford & Alejandro Llanos-Cuentas & María Valdivia & Alejandra Bussalleu, 2015. "Vulnerability and adaptive capacity of community food systems in the Peruvian Amazon: a case study from Panaillo," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 77(3), pages 2049-2079, July.
    6. Jonas Bergmann, 2021. "Planned relocation in Peru: advancing from well-meant legislation to good practice," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 11(3), pages 365-375, September.
    7. Shaikh M.S.U. Eskander & Edward B. Barbier & Benjamin Gilbert, 2018. "Fishing and Nonfishing Income Decisions: The Role of Human Capital and Family Structure," Land Economics, University of Wisconsin Press, vol. 94(1), pages 114-136.
    8. Noack,Frederik & Wunder,Sven & Angelsen,Arild & Börner,Jan, 2015. "Responses to weather and climate : a cross-section analysis of rural incomes," Policy Research Working Paper Series 7478, The World Bank.
    9. Sawada, Yasuyuki & Takasaki, Yoshito, 2017. "Natural Disaster, Poverty, and Development: An Introduction," World Development, Elsevier, vol. 94(C), pages 2-15.
    10. Mueller, Valerie & Quisumbing, Agnes, 2010. "Short- and long-term effects of the 1998 Bangladesh flood on rural wages," IFPRI discussion papers 956, International Food Policy Research Institute (IFPRI).
    11. Jagger, Pamela & Cheek, Jennifer Zavaleta & Miller, Daniel & Ryan, Casey & Shyamsundar, Priya & Sills, Erin, 2022. "The Role of Forests and Trees in Poverty Dynamics," Forest Policy and Economics, Elsevier, vol. 140(C).
    12. Aznarul Islam & Susmita Ghosh, 2021. "Economic transformation in the wake of flood: a case of the lower stretch of the Mayurakshi River Basin, India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(10), pages 15550-15590, October.
    13. Damania, Richard & Joshi, Anupam & Russ, Jason, 2020. "India’s forests – Stepping stone or millstone for the poor?," World Development, Elsevier, vol. 125(C).
    14. Filipski, Mateusz & Jin, Ling & Zhang, Xiaobo & Chen, Kevin Z., 2019. "Living like there’s no tomorrow: The psychological effects of an earthquake on savings and spending behavior," European Economic Review, Elsevier, vol. 116(C), pages 107-128.

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    Keywords

    Consumer/Household Economics; International Development;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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