IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v132y2017icp69-79.html
   My bibliography  Save this article

Remittances and Natural Resource Extraction: Evidence from Mexico

Author

Listed:
  • López-Feldman, Alejandro
  • Chávez, Estefanía

Abstract

While much attention has been given to the effects of migration and remittances on agricultural activities in the communities of origin, the relationship between remittances and rural households' use of natural resources remains understudied. This paper contributes in filling this gap by using a Mexican data set that contains detailed information on both remittances and use of natural resources at the household level. The data set is representative of the rural population of Mexico at the national level, which allows us to move beyond case studies overcoming one of the main challenges for understanding the relationship between livelihoods and the environment. Results show that remittances have significant effects on the use of natural resources by the receiving households. We find that a) remittances decrease the likelihood that a household will participate in natural resource extraction, and b) households that receive remittances and extract natural resources have lower environmental income and lower environmental reliance than households not receiving remittances. By reducing participation in extraction as well as reliance on natural resources, remittances reduce the pressure that local populations put on the natural resource base that surrounds them. This could mean good news for the conservation of natural resources. However, it also shows the vulnerability of Mexico's natural resource to periods of low or negative economic growth in the United States inasmuch as they affect the amount of remittances that migrants send back home.

Suggested Citation

  • López-Feldman, Alejandro & Chávez, Estefanía, 2017. "Remittances and Natural Resource Extraction: Evidence from Mexico," Ecological Economics, Elsevier, vol. 132(C), pages 69-79.
  • Handle: RePEc:eee:ecolec:v:132:y:2017:i:c:p:69-79
    DOI: 10.1016/j.ecolecon.2016.10.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800916301902
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Taylor, J Edward & Rozelle, Scott & de Brauw, Alan, 2003. "Migration and Incomes in Source Communities: A New Economics of Migration Perspective from China," Economic Development and Cultural Change, University of Chicago Press, vol. 52(1), pages 75-101, October.
    3. Will Cavendish, 1999. "Poverty, inequality and environmental resources: quantitative analysis of rural households," CSAE Working Paper Series 1999-09, Centre for the Study of African Economies, University of Oxford.
    4. Wouterse, Fleur & Taylor, J. Edward, 2008. "Migration and Income Diversification:: Evidence from Burkina Faso," World Development, Elsevier, vol. 36(4), pages 625-640, April.
    5. Stark, Oded & Bloom, David E, 1985. "The New Economics of Labor Migration," American Economic Review, American Economic Association, vol. 75(2), pages 173-178, May.
    6. J. Edward Taylor & Antonio Yunez-Naude, 2000. "The Returns from Schooling in a Diversified Rural Economy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 287-297.
    7. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, March.
    8. Jennifer Alix-Garcia & Craig McIntosh & Katharine R. E. Sims & Jarrod R. Welch, 2013. "The Ecological Footprint of Poverty Alleviation: Evidence from Mexico's Oportunidades Program," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 417-435, May.
    9. William Cavendish, 1999. "Poverty, inequality and environmental resources: quantitative analysis of rural households," Economics Series Working Papers WPS/1999-09, University of Oxford, Department of Economics.
    10. Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer;Population Association of America (PAA), vol. 38(1), pages 115-132, February.
    11. Manning, Dale T. & Taylor, J. Edward, 2014. "Migration and fuel use in rural Mexico," Ecological Economics, Elsevier, vol. 102(C), pages 126-136.
    12. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-918, October.
    13. Demirgüç-Kunt, Asli & Córdova, Ernesto López & Pería, María Soledad Martínez & Woodruff, Christopher, 2011. "Remittances and banking sector breadth and depth: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 95(2), pages 229-241, July.
    14. Amy Lynne Damon, 2010. "Agricultural Land Use and Asset Accumulation in Migrant Households: the Case of El Salvador," Journal of Development Studies, Taylor & Francis Journals, vol. 46(1), pages 162-189.
    15. Angelsen, Arild & Jagger, Pamela & Babigumira, Ronnie & Belcher, Brian & Hogarth, Nicholas J. & Bauch, Simone & Börner, Jan & Smith-Hall, Carsten & Wunder, Sven, 2014. "Environmental Income and Rural Livelihoods: A Global-Comparative Analysis," World Development, Elsevier, vol. 64(S1), pages 12-28.
    16. Woodruff, Christopher & Zenteno, Rene, 2007. "Migration networks and microenterprises in Mexico," Journal of Development Economics, Elsevier, vol. 82(2), pages 509-528, March.
    17. J. Edward Taylor & Alejandro Lopez-Feldman, 2010. "Does Migration Make Rural Households More Productive? Evidence from Mexico," Journal of Development Studies, Taylor & Francis Journals, vol. 46(1), pages 68-90.
    18. Benjamin Davis & Gero Carletto & Paul Winters, 2010. "Migration, Transfers and Economic Decision Making among Agricultural Households: an Introduction," Journal of Development Studies, Taylor & Francis Journals, vol. 46(1), pages 1-13.
    19. 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.
    20. Kaivan Munshi, 2003. "Networks in the Modern Economy: Mexican Migrants in the U. S. Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 118(2), pages 549-599.
    21. Hecht, Susanna B. & Kandel, Susan & Gomes, Ileana & Cuellar, Nelson & Rosa, Herman, 2006. "Globalization, Forest Resurgence, and Environmental Politics in El Salvador," World Development, Elsevier, vol. 34(2), pages 308-323, February.
    22. Gray, Clark L., 2009. "Environment, Land, and Rural Out-migration in the Southern Ecuadorian Andes," World Development, Elsevier, vol. 37(2), pages 457-468, February.
    23. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
    24. HwaJung Choi, 2007. "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines," World Bank Economic Review, World Bank Group, vol. 21(2), pages 219-248, May.
    25. Sjaastad, Espen & Angelsen, Arild & Vedeld, Pål & Bojö, Jan, 2005. "What is environmental income?," Ecological Economics, Elsevier, vol. 55(1), pages 37-46, October.
    26. Michael Greenstone & B. Kelsey Jack, 2015. "Envirodevonomics: A Research Agenda for an Emerging Field," Journal of Economic Literature, American Economic Association, vol. 53(1), pages 5-42, March.
    27. Narain, Urvashi & Gupta, Shreekant & van 't Veld, Klaas, 2008. "Poverty and resource dependence in rural India," Ecological Economics, Elsevier, vol. 66(1), pages 161-176, May.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:132:y:2017:i:c:p:69-79. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.