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The Effect of Nature's Wealth on Economic Development: Evidence from Wildlife

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  • Armand, Alex
  • Kim Taveras, Ivan

Abstract

Twenty percent of the world population depend on wildlife for income and food. We show how exogenous variation in the wealth of marine wildlife shapes human and economic development. For the period 1972–2018, we analyze half a million adult women and 1.5 million live births in 36 low- and middle-income countries. We document how short-run deteriorations near human settlements cause diets to be poorer in nutrients, increasing malnutrition among the most vulnerable population, pregnant women. These shocks have negative impacts on their children. When deteriorations are experienced in utero, they increase mortality, worsen physical development, and have long-lasting effects on economic well-being. Shocks operate in an unobserved way as parents do not raise health investments. Effects are larger in areas that are more dependent on marine resources and where overfishing depletes them.

Suggested Citation

  • Armand, Alex & Kim Taveras, Ivan, 2022. "The Effect of Nature's Wealth on Economic Development: Evidence from Wildlife," CEPR Discussion Papers 15680, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15680
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    Cited by:

    1. Guimbeau, Amanda & Ji, Xinde & Menon, Nidhiya & Long, Zi, 2022. "An Extra Grain of Salt: The Effect of Salinity Exposure on Early Life Health Outcomes in Coastal Bangladesh," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322076, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Child; Climate change; Economic development; Health; Mortality; Natural resource; Ocean; Renewable resource;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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