Health Shocks and Natural Resource Management: Evidence from Western Kenya
AbstractPoverty and altered planning horizons brought on by the HIV/AIDS epidemic can change individual discount rates, altering incentives to conserve natural resources. Using longitudinal data from household surveys in western Kenya, we estimate impacts of health status on labor productivity and discount rates. We find that household size and composition are predictors of whether the effect on productivity dominates the discount rate effect, or vice-versa. Since households with more and younger members are better able to reallocate labor to cope with productivity shocks, the discount rate impact dominates for these households and health improvements lead to greater levels of conservation. In smaller families with less substitutable labor, the productivity impact dominates and health improvements lead to greater environmental degradation.
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Date of creation: Dec 2010
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Find related papers by JEL classification:
- I1 - Health, Education, and Welfare - - Health
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
- Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
This paper has been announced in the following NEP Reports:
- NEP-AFR-2010-12-18 (Africa)
- NEP-ALL-2010-12-18 (All new papers)
- NEP-DEV-2010-12-18 (Development)
- NEP-ENV-2010-12-18 (Environmental Economics)
- NEP-HEA-2010-12-18 (Health Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Harsha Thirumurthy & Joshua Graff-Zivin & Markus Goldstein, 2005.
"The Economic Impact of AIDS Treatment: Labor Supply in Western Kenya,"
NBER Working Papers
11871, National Bureau of Economic Research, Inc.
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- Harsha Thirumurthy & Markus Goldstein & Joshua Graff Zivin, 2005. "The Economic Impact of AIDS Treatment: Labor Supply in Western Kenya," Working Papers id:300, eSocialSciences.
- Harsha Thirumurthy & Joshua Graff Zivin & Markus Goldstein, 2006. "The Economic Impact of AIDS Treatment: Labor Supply in Western Kenya," Working Papers, Economic Growth Center, Yale University 947, Economic Growth Center, Yale University.
- Jacoby, Hanan G & Skoufias, Emmanuel, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 64(3), pages 311-35, July.
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