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Does natural resource extraction mitigate poverty and inequality? Evidence from rural Mexico and a Lacandona Rainforest Community

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  • L PEZ-FELDMAN, ALEJANDRO
  • MORA, JORGE
  • TAYLOR, J. EDWARD

Abstract

The potential importance of natural resources for the livelihood of poor rural households has long been recognized but seldom quantified and analyzed. In this paper we apply poverty and inequality measures to national and community level data sets to explore the impacts of resource extraction on rural welfare. Our findings suggest that natural resource extraction reduces both income inequality and poverty. Results from a simulation analysis at the community level indicate that poverty may be reduced, in the short-run, by increases in the price of a non-timber forest product
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  • L Pez-Feldman, Alejandro & Mora, Jorge & Taylor, J. Edward, 2007. "Does natural resource extraction mitigate poverty and inequality? Evidence from rural Mexico and a Lacandona Rainforest Community," Environment and Development Economics, Cambridge University Press, vol. 12(02), pages 251-269, April.
  • Handle: RePEc:cup:endeec:v:12:y:2007:i:02:p:251-269_00
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    1. Davidson, Russell & Flachaire, Emmanuel, 2007. "Asymptotic and bootstrap inference for inequality and poverty measures," Journal of Econometrics, Elsevier, vol. 141(1), pages 141-166, November.
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    1. Bir Chhetri & Helle Larsen & Carsten Smith-Hall, 2015. "Environmental resources reduce income inequality and the prevalence, depth and severity of poverty in rural Nepal," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 17(3), pages 513-530, June.
    2. López-Feldman, Alejandro, 2014. "Shocks, Income and Wealth: Do They Affect the Extraction of Natural Resources by Rural Households?," World Development, Elsevier, vol. 64(S1), pages 91-100.
    3. Lopez-Feldman, Alejandro & Taylor, J. Edward & Yunez-Naude, Antonio, 2010. "Natural Resource Dependence in Rural Mexico," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61230, Agricultural and Applied Economics Association.
    4. Carmignani, Fabrizio, 2013. "Development outcomes, resource abundance, and the transmission through inequality," Resource and Energy Economics, Elsevier, vol. 35(3), pages 412-428.
    5. Oli, Bishwa Nath & Treue, Thorsten & Smith-Hall, Carsten, 2016. "The relative importance of community forests, government forests, and private forests for household-level incomes in the Middle Hills of Nepal," Forest Policy and Economics, Elsevier, vol. 70(C), pages 155-163.
    6. E. Lance Howe & James J. Murphy & Drew Gerkey & Colin T. West, 2015. "Indirect Reciprocity, Resource Sharing, and Environmental Risk: Evidence from Field Experiments in Siberia," Working Papers 2015-04, University of Alaska Anchorage, Department of Economics.
    7. Perrings, Charles, 2014. "Environment and development economics 20 years on," Environment and Development Economics, Cambridge University Press, vol. 19(03), pages 333-366, June.
    8. Babulo, Bedru & Muys, Bart & Nega, Fredu & Tollens, Eric & Nyssen, Jan & Deckers, Jozef & Mathijs, Erik, 2009. "The economic contribution of forest resource use to rural livelihoods in Tigray, Northern Ethiopia," Forest Policy and Economics, Elsevier, vol. 11(2), pages 123-131, March.
    9. Lopez-Feldman, Alejandro & Taylor, J. Edward, 2006. "Labor Allocation to Non-Timber Forest Products Extraction: The Case of Lacandona Rainforest Community," Working Papers 190915, University of California, Davis, Department of Agricultural and Resource Economics.
    10. López-Feldman, Alejandro & Chávez, Estefanía, 2017. "Remittances and Natural Resource Extraction: Evidence from Mexico," Ecological Economics, Elsevier, vol. 132(C), pages 69-79.
    11. Ntuli, Herbert & Muchapondwa, Edwin, 2017. "Effects of wildlife resources on community welfare in Southern Africa," Ecological Economics, Elsevier, vol. 131(C), pages 572-583.
    12. Robinson, Brian E. & Provencher, Bill & Lewis, David J., 2013. "Managing Wild Resources: Institutional Choice and the Recovery of Resource Rent in Southwest China," World Development, Elsevier, vol. 48(C), pages 120-132.
    13. Marchand, Joseph & Weber, Jeremy, 2016. "Local Labor Markets and Natural Resources: A Synthesis of the Literature," Working Papers 2016-10, University of Alberta, Department of Economics, revised 24 Jan 2017.
    14. Alejandro López-Feldman, 2012. "Environmental Dependence of Mexican Rural Households: Exploring the Role of Income, Shocks, Rules and Roads," Working papers DTE 528, CIDE, División de Economía.
    15. Asfaw, Adanech & Lemenih, Mulugeta & Kassa, Habtemariam & Ewnetu, Zeleke, 2013. "Importance, determinants and gender dimensions of forest income in eastern highlands of Ethiopia: The case of communities around Jelo Afromontane forest," Forest Policy and Economics, Elsevier, vol. 28(C), pages 1-7.

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