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How cash transfers program affects environmental poverty among ultra-poor? Insights from the BISP in Pakistan

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  • Nawaz, Saima
  • Iqbal, Nasir

Abstract

This paper evaluates the effects of cash transfers program, that is, the Benazir Income Support Program (BISP) on environmental poverty using household data. A multidimensional environmental poverty index (EPI), based on four dimensions of environmental services, namely, dwelling, water, sanitation, and energy, is developed using the Alkire-Foster method. EPI shows that about 57% of households face multidimensional environmental poverty in the sample group. Our empirical analysis, based on regression discontinuity design, indicates that BISP cash transfers have a negative and significant impact on environmental poverty. This empirical evidence implies that cash transfers increase the use of environmental services among BISP beneficiaries. The effects of cash transfers on environmental poverty vary from one province to another, which emphasizes the importance of regional differences and heterogeneities. The impacts of BISP cash transfers on various dimensions of environmental poverty, such as dwelling, water, sanitation, and energy, also differ across provinces. The government should expand social protection programs to overcome environmental poverty with a focus on the use of environmental services. However, any efforts to reduce environmental poverty through cash transfers may depend on household preferences and availability of environmental services.

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  • Nawaz, Saima & Iqbal, Nasir, 2021. "How cash transfers program affects environmental poverty among ultra-poor? Insights from the BISP in Pakistan," Energy Policy, Elsevier, vol. 148(PB).
    • Handle: RePEc:eee:enepol:v:148:y:2021:i:pb:s0301421520306893
    DOI: 10.1016/j.enpol.2020.111978
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    6. Unbreen Qayyum & Neelum Nigar, 2024. "Analysing the impact of idiosyncratic and covariate shocks on households’ food and non-food consumption: empirical evidence from Benazir Income Support Program," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 23937-23960, September.
    7. Nasir Iqbal & Saima Nawaz & Muhammad Aqeel Anwar, 2022. "The Socio-economic Analysis of the Street Economy in the Twin Cities of Pakistan (Article)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 61(3), pages 335-363.
    8. Ghulam Mustafa, 2022. "Weather Shocks, Unconditional Cash Transfers and Household Food Outcomes," PIDE-Working Papers 2022:8, Pakistan Institute of Development Economics.
    9. Simona Helmsmüller & Andreas Landmann, 2022. "Does free hospitalization insurance change health care consumption of the poor? Short-term evidence from Pakistan," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 47(1), pages 238-275, March.

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