The Safety-net Use of Non Timber Forest Products
AbstractIncompleteness of insurance markets is a crucial weakness of developing countries. In this context, the poor households of rural regions often exploit common property resources, such as forests, as insurance in case of economics stress. The aim of this paper is to derive the implications of this insurance use on the forest cover, and thus on deforestation. The land-use choice between agricultural land and forest therefore resembles a portfolio diversification. However, I also show that this insurance strategy may lead to resource overexploitation and constitute a poverty trap.
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Bibliographic InfoPaper provided by Laboratoire d'Economie Forestiere, AgroParisTech-INRA in its series Working Papers - Cahiers du LEF with number 2008-04.
Length: 29 pages
Date of creation: Sep 2008
Date of revision:
deforestation; household model; risk aversion; agricultural expansion; forest products;
Find related papers by JEL classification:
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
This paper has been announced in the following NEP Reports:
- NEP-AGR-2009-04-18 (Agricultural Economics)
- NEP-ALL-2009-04-18 (All new papers)
- NEP-IAS-2009-04-18 (Insurance Economics)
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