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The Safety-net Use of Non Timber Forest Products

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Author Info
Philippe Delacote () (Laboratoire d'Economie Forestière, INRA - AgroParisTech)

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Abstract

Incompleteness 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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File URL: http://www.nancy.inra.fr/lef/content/download/2903/28846/version/1/file/doc_LEF_n2008-04.pdf
File Format: application/pdf
File Function: First version, 2008
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Publisher Info
Paper provided by Laboratoire d'Economie Forestiere, AgroParisTech-INRA in its series Working Papers - Cahiers du LEF with number 2008-04.

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Length: 29 pages
Date of creation: Sep 2008
Date of revision:
Handle: RePEc:lef:wpaper:2008-04

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Related research
Keywords: 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
Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

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References listed on IDEAS
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  1. Stefan Dercon, 2002. "Income Risk, Coping Strategies, and Safety Nets," World Bank Research Observer, Oxford University Press, vol. 17(2), pages 141-166, September.
    Other versions:
  2. J. Taylor & Irma Adelman, 2003. "Agricultural Household Models: Genesis, Evolution, and Extensions," Review of Economics of the Household, Springer, vol. 1(1), pages 33-58, January. [Downloadable!] (restricted)
  3. Angelsen, Arild, 1995. "Shifting cultivation and "deforestation": A study from Indonesia," World Development, Elsevier, vol. 23(10), pages 1713-1729, October. [Downloadable!] (restricted)
  4. Baland, Jean-Marie & Francois, Patrick, 2005. "Commons as insurance and the welfare impact of privatization," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 211-231, February. [Downloadable!] (restricted)
    Other versions:
  5. Angelsen, Arild & Kaimowitz, David, 1999. "Rethinking the Causes of Deforestation: Lessons from Economic Models," World Bank Research Observer, Oxford University Press, vol. 14(1), pages 73-98, February. [Downloadable!]
  6. Angelsen, Arild, 1999. "Agricultural expansion and deforestation: modelling the impact of population, market forces and property rights," Journal of Development Economics, Elsevier, vol. 58(1), pages 185-218, February. [Downloadable!] (restricted)
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