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Smoothing Income against Crop Flood Losses in Amazonia: Rain Forest or Rivers as a Safety Net?

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  • Yoshito Takasaki
  • Bradford L. Barham
  • Oliver T. Coomes

Abstract

This article examines the role of ex post labor supply in smoothing income in response to crop losses caused by large floods among riverine households in the Peruvian Amazon, where rich environmental endowments permit a variety of resource extractive activities and coping responses. The paper finds that households respond to crop losses primarily by intensifying fishing effort, not by relying on gathering of nontimber forest products, hunting, or asset liquidation. This ex post labor adjustment helps to smooth total income against small crop losses but less well against large crop losses. Both relatively nonpoor households with better fishing capital and poor young households with a physical labor advantage employ this natural insurance in rivers. Copyright © 2010 Blackwell Publishing Ltd.

Suggested Citation

  • Yoshito Takasaki & Bradford L. Barham & Oliver T. Coomes, 2010. "Smoothing Income against Crop Flood Losses in Amazonia: Rain Forest or Rivers as a Safety Net?," Review of Development Economics, Wiley Blackwell, vol. 14(1), pages 48-63, February.
  • Handle: RePEc:bla:rdevec:v:14:y:2010:i:1:p:48-63
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    Cited by:

    1. Cotta, Jamie N., 2015. "Contributions of local floodplain resources to livelihoods and household income in the Peruvian Amazon," Forest Policy and Economics, Elsevier, vol. 59(C), pages 35-46.
    2. Filipski, Mateusz J. & Jin, Ling & Zhang, Xiaobo & Chen, Kevin Z., 2015. "Living like there’s no tomorrow: Saving and spending following the Sichuan earthquake:," IFPRI discussion papers 1461, International Food Policy Research Institute (IFPRI).
    3. Mya Sherman & James Ford & Alejandro Llanos-Cuentas & María José Valdivia, 2016. "Food system vulnerability amidst the extreme 2010–2011 flooding in the Peruvian Amazon: a case study from the Ucayali region," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(3), pages 551-570, June.
    4. Takasaki, Yoshito, 2011. "Do the Commons Help Augment Mutual Insurance Among the Poor?," World Development, Elsevier, vol. 39(3), pages 429-438, March.
    5. Mya Sherman & James Ford & Alejandro Llanos-Cuentas & María Valdivia & Alejandra Bussalleu, 2015. "Vulnerability and adaptive capacity of community food systems in the Peruvian Amazon: a case study from Panaillo," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 77(3), pages 2049-2079, July.
    6. Noack,Frederik & Wunder,Sven & Angelsen,Arild & Börner,Jan, 2015. "Responses to weather and climate : a cross-section analysis of rural incomes," Policy Research Working Paper Series 7478, The World Bank.
    7. Sawada, Yasuyuki & Takasaki, Yoshito, 2017. "Natural Disaster, Poverty, and Development: An Introduction," World Development, Elsevier, vol. 94(C), pages 2-15.
    8. Mueller, Valerie & Quisumbing, Agnes, 2010. "Short- and long-term effects of the 1998 Bangladesh flood on rural wages," IFPRI discussion papers 956, International Food Policy Research Institute (IFPRI).

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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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