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Household Vulnerability to Wild Animal Attacks in Developing Countries: Experimental Evidence from Rural Pakistan

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  • Kurosaki, Takashi
  • Khan, Hidayat Ullah
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    Abstract

    Based on a three-year panel dataset of households collected in rural Pakistan, we first quantify the extent to which farmers are vulnerable to attacks by wild boars; we then examine the impact of an intervention on households’ capacity to reduce related income losses. A local nongovernmental organization implemented the intervention as a randomized controlled trial at the beginning of the second survey year. This experimental design enabled us to cleanly identify the impact of the intervention. We find that the intervention was highly effective in eliminating the crop-income loss of treated households in the second year, but that effects were not discernible in the third year. The finding from the third year could be due to the high implicit cost incurred by the households in implementing the treatment. Regarding the impact of the intervention on a number of consumption measures, the difference-in-difference estimate for the impact on consumption was insignificant in the second year, but highly positive in the third year when estimated without other controls. A part of this consumption increase was because of changes in remittance inflows. The overall results indicate the possibility that treatment in the absence of subsidies was costly for households due to hidden costs, and hence, the income gain owing to the initial treatment was transient.

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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/25631/1/wp2012-11.pdf
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    Bibliographic Info

    Paper provided by Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University in its series CEI Working Paper Series with number 2012-11.

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    Length: 29, 13 p.
    Date of creation: Mar 2013
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    Handle: RePEc:hit:hitcei:2012-11

    Note: March 2013
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    Keywords: wild animal attack; agriculture; consumption; randomized controlled trial; Pakistan;

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    1. Hans P. Binswanger-Mkhize, 2012. "Is There Too Much Hype about Index-based Agricultural Insurance?," Journal of Development Studies, Taylor & Francis Journals, vol. 48(2), pages 187-200, February.
    2. Marcel Fafchamps & Takashi Kurosaki, 2000. "Insurance Market Efficiency and Crop Choices in Pakistan," Economics Series Working Papers 12, University of Oxford, Department of Economics.
    3. Deaton, Angus, 1992. "Understanding Consumption," OUP Catalogue, Oxford University Press, number 9780198288244, October.
    4. Shawn Cole & Xavier Giné & Jeremy Tobacman & Petia Topalova & Robert Townsend & James Vickery, 2009. "Barriers to household risk management: evidence from India," Staff Reports 373, Federal Reserve Bank of New York.
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