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Is There a Nexus between Poverty and Environment in Rural India?

  • Bhattacharya, Haimanti
  • Innes, Robert
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    This paper presents an empirical analysis of the relationship between rural poverty and environmental change using district-level data from South, Central and West India. Unlike prior works, this study puts the hypothesis of bi-directional link between poverty and environment to econometric test. Environmental change is measured using a satellite-based vegetation index. Consonant with the dominant view in the literature, the evidence suggests that rural poverty spur vegetation degradation. The results also indicate that the vegetation degradation spurs rural poverty but the magnitude of the effect varies across sub regions classified on the basis of geographic and climatic factors. Thus these results provide evidence in support of existence of a poverty-environment nexus in rural India.

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    File URL: http://purl.umn.edu/21201
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    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21201.

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    Date of creation: 2006
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    Handle: RePEc:ags:aaea06:21201
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    1. Banerjee, Abhijit & Somanathan, Rohini, 2007. "The political economy of public goods: Some evidence from India," Journal of Development Economics, Elsevier, vol. 82(2), pages 287-314, March.
    2. Dasgupta, Susmita & Deichmann, Uwe & Meisner, Craig & Wheeler, David, 2003. "The poverty/environment nexus in Cambodia and Lao People's Democratic Republic," Policy Research Working Paper Series 2960, The World Bank.
    3. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
    4. Swinton, Scott M. & Escobar, German & Reardon, Thomas, 2003. "Poverty and Environment in Latin America: Concepts, Evidence and Policy Implications," World Development, Elsevier, vol. 31(11), pages 1865-1872, November.
    5. Escobal, Javier & Aldana, Ursula, 2003. "Are Nontimber Forest Products the Antidote to Rainforest Degradation? Brazil Nut Extraction in Madre De Dios, Peru," World Development, Elsevier, vol. 31(11), pages 1873-1887, November.
    6. Masako Ikefuji & Ryo Horii, 2007. "Wealth Heterogeneity and Escape from the Poverty-Environment Trap," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(6), pages 1041-1068, December.
    7. Raghbendra Jha & Bagala Biswal & Urvashi D. Biswal, 2001. "An Empirical Analysis of the Impact of Public Expenditures on Education and Health on Poverty in Indian States," Working Papers 998, Queen's University, Department of Economics.
    8. Heath, John & Binswanger, Hans, 1996. "Natural resource degradation effects of poverty and population growth are largely policy-induced: the case of Colombia," Environment and Development Economics, Cambridge University Press, vol. 1(01), pages 65-84, February.
    9. Kanchan Chopra & S. Gulati, 1997. "Environmental degradation and population movements: The role of property rights," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 9(4), pages 383-408, June.
    10. Jha,R., 2000. "Reducing Poverty and Inequality in India: Has Liberalization Helped?," Research Paper 204, World Institute for Development Economics Research.
    11. Bahamondes, Miguel, 2003. "Poverty-Environment Patterns in a Growing Economy: Farming Communities in Arid Central Chile, 1991-99," World Development, Elsevier, vol. 31(11), pages 1947-1957, November.
    12. Esmaiel Abounoori & Patrick McCloughan, 2003. "A simple way to calculate the Gini Coefficient for grouped as well as ungrouped data," Applied Economics Letters, Taylor & Francis Journals, vol. 10(8), pages 505-509.
    13. 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.
    14. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
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