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Managing the Environmental Consequences of Growth: Forest Degradation in the Indian mid-Himalayas

Author

Listed:
  • Jean-Marie Baland

    (University of Namur)

  • Pranab Bardhan

    (University of California, Berkeley)

  • Sangmitra Das

    (Indian Statistical Institute New Delhi)

  • Dilip Mookherjee

    (Boston University)

  • Rinki Sarkar

    (Centre for Interdisciplinary Studies in Environment & Development Bangalore)

Abstract

This paper assesses the relation between living standards and forest degradation in the Indian mid-Himalayas, and related policy issues. The analysis is based on detailed household, village and ecology surveys in a sample of 165 villages in Uttaranchal and Himachal Pradesh. Our prior fieldwork in this region indicates that forest degradation rather than deforestation is the key problem, and that this has been driven primarily by collection of firewood and fodder by residents of neighbouring villages. An econometric model relating household collections to relevant characteristics of households, villages and forests is estimated. We find that collections are inelastic with respect to income, and unit elastic with respect to population; hence growth in living standards will have little impact on anthropogenic pressures on the forest, but population growth will aggravate the problem substantially. We subsequently assess the impact of forest degradation on local living standards. An increase in collection time by one hour, representative of changes observed over the past two decades, will lower income of neighbouring households by less than 1%. Hence the size of the local externality is small, providing an explanation for lack of collective action among local villagers to regulate forest use. The argument for external policy interventions thus depends on the significance of associated non-local externalities related to ecological effects of Himalayan forest degradation. A Rs 200 subsidy per LPG cylinder is estimated to raise the proportion of households in these villages using LPG from 7% to 78% , and lower wood use by 44%, at a cost of approximately 4% of average consumption.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jean-Marie Baland & Pranab Bardhan & Sangmitra Das & Dilip Mookherjee & Rinki Sarkar, 2006. "Managing the Environmental Consequences of Growth: Forest Degradation in the Indian mid-Himalayas," India Policy Forum, Global Economy and Development Program, The Brookings Institution, vol. 3(1), pages 125-277.
  • Handle: RePEc:bin:indiap:v:3:y:2006:i:2006-1:p:125-277
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    References listed on IDEAS

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    Cited by:

    1. Baland, Jean-Marie & Bardhan, Pranab & Das, Sanghamitra & Mookherjee, Dilip, 2010. "Forests to the People: Decentralization and Forest Degradation in the Indian Himalayas," World Development, Elsevier, vol. 38(11), pages 1642-1656, November.
    2. Raghavan, Roopali & Shrimali, Gireesh, 2015. "Forest cover increase in India: The role of policy and markets," Forest Policy and Economics, Elsevier, vol. 61(C), pages 70-76.
    3. World Bank, 2007. "Poverty and Environment : Understanding Linkages at the Household Level," World Bank Other Operational Studies 7744, The World Bank.
    4. Jean-Marie Baland & Pranab Bardhan & Sangharmitra Das & Dilip Mookherjee, 2009. "Forest Degradation in the Himalayas: Determinants and Policy Options," Working Papers 1002, University of Namur, Department of Economics.

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