The economic contribution of forest resource use to rural livelihoods in Tigray, Northern Ethiopia
By explicitly incorporating forest environmental products (FEPs) in household income accounting, this paper examines the role and significance of FEPs in household income and in rural poverty and inequality. As most conventional household surveys do not incorporate income from environmental sources, substantial gaps exist in our understanding of the actual functioning of rural economies and the extent of rural poverty and inequality. Using data from 360 randomly sampled rural households from 12 villages in Tigray (northern Ethiopia), we measure forest environmental resource use with a monetary yardstick and compares the value of FEPs with other household economic activities. We found that products from environmental sources represent an important component in rural livelihoods. Our analyses indicate that in the study area income from forest environmental sources occupies the second largest share in average total household income next to crop income. Poverty and inequality analyses show that incorporating forest environmental incomes in household accounts significantly reduces measured rural poverty and income inequality. Therefore, we suggest that sustainable forest management schemes should be adopted to maintain and enhance the flow of economic benefits to the surrounding communities without damaging the natural resource system.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ravallion, Martin & Bidani, Benu, 1994.
"How Robust Is a Poverty Profile?,"
World Bank Economic Review,
World Bank Group, vol. 8(1), pages 75-102, January.
- Graham Pyatt & Chau-nan Chen & John Fei, 1980. "The Distribution of Income by Factor Components," The Quarterly Journal of Economics, Oxford University Press, vol. 95(3), pages 451-473.
- 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.
- Shreekant Gupta & Urvashi Narain & Klaas Van't Veld, 2010.
"Poverty and the Environment: Exploring the Relationship between Household Incomes, Private Assets, and Natural Assets,"
- Urvashi Narain & Shreekant Gupta & Klaas van ’t Veld, 2008. "Poverty and the Environment: Exploring the Relationship Between Household Incomes, Private Assets, and Natural Assets," Land Economics, University of Wisconsin Press, vol. 84(1), pages 148-167.
- Urvashi Narain & Shreekant Gupta & Klaas vant Veld, 2005. "Poverty and the Environment-Exploring the Relationship between Household Incomes, Private Assets and Natural Assets," Working papers 134, Centre for Development Economics, Delhi School of Economics.
- Narain, Urvashi & van 't Veld, Klaas & Gupta, Shreekant, 2005. "Poverty and the Environment: Exploring the Relationship between Household Incomes, Private Assets, and Natural Assets," Discussion Papers dp-05-18, Resources For the Future.
- Reddy, S. R. C. & Chakravarty, S. P., 1999. "Forest Dependence and Income Distribution in a Subsistence Economy: Evidence from India," World Development, Elsevier, vol. 27(7), pages 1141-1149, July.
- Godoy, R. & Overman, H. & Demmer, J. & Apaza, L. & Byron, E. & Huanca, T. & Leonard, W. & Perez, E. & Reyes-Garcia, V. & Vadez, V., 2002. "Local financial benefits of rain forests: comparative evidence from Amerindian societies in Bolivia and Honduras," Ecological Economics, Elsevier, vol. 40(3), pages 397-409, March.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Fisher, Monica, 2004. "Household welfare and forest dependence in Southern Malawi," Environment and Development Economics, Cambridge University Press, vol. 9(02), pages 135-154, May.
- Thon, Dominique, 1979. "On Measuring Poverty," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(4), pages 429-39, December.
- Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
- Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
- Mamo, Getachew & Sjaastad, Espen & Vedeld, Pal, 2007. "Economic dependence on forest resources: A case from Dendi District, Ethiopia," Forest Policy and Economics, Elsevier, vol. 9(8), pages 916-927, May.
- Tilahun, Mesfin & Olschewski, Roland & Kleinn, Christoph & Gebrehiwot, Kindeya, 2007. "Economic analysis of closing degraded Boswellia papyrifera dry forest from human interventions -- A study from Tigray, Northern Ethiopia," Forest Policy and Economics, Elsevier, vol. 9(8), pages 996-1005, May.
- Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-56, February.
- Kakwani, Nanak, 1980. "On a Class of Poverty Measures," Econometrica, Econometric Society, vol. 48(2), pages 437-46, March.
- 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.
- Lopez-Feldman, Alejandro & Mora, Jorge & Taylor, J. Edward, 2006. "Does Natural Resource Extraction Mitigate Poverty and Inequality? Evidence from Rural Mexico and a Lacadona Rainforest Community," Working Papers 190916, University of California, Davis, Department of Agricultural and Resource Economics.
- Shujie Yao, 1999. "On the decomposition of Gini coefficients by population class and income source: a spreadsheet approach and application," Applied Economics, Taylor & Francis Journals, vol. 31(10), pages 1249-1264.
- Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-40, September.
- Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
- Reardon, Thomas & Vosti, Stephen A., 1995. "Links between rural poverty and the environment in developing countries: Asset categories and investment poverty," World Development, Elsevier, vol. 23(9), pages 1495-1506, September.
- Sjaastad, Espen & Angelsen, Arild & Vedeld, Pål & Bojö, Jan, 2005. "What is environmental income?," Ecological Economics, Elsevier, vol. 55(1), pages 37-46, October.
- Anthony F. Shorrocks, 1983. "The Impact of Income Components on the Distribution of Family Incomes," The Quarterly Journal of Economics, Oxford University Press, vol. 98(2), pages 311-326.
When requesting a correction, please mention this item's handle: RePEc:eee:forpol:v:11:y:2009:i:2:p:123-131. 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: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.