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Identifying a Sustainable Pathway to Household Multi-dimensional Poverty Reduction in Rural China

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  • You, Jing
  • Kontoleon, Andreas
  • Wang, Sangui

Abstract

Poor rural households in developing countries usually endure many-faceted burdens including monetary poverty, nutrition deficiency, and energy shortage due to reliance on limited local natural resources with low utilisation efficiency. This paper investigates a pathway for rural Chinese households to escape the vicious circle between multi-dimensional low wellbeing including deficiency of income, nutrition and energy without relying simply on excessive firewood plantations. We propose a dynamic and recursive multi-equation mixed model to capture the complex, endogenous, and causal inter-play between the above three dimensions of poverty and households’ environment-related livelihood arrangement, namely firewood plantations. We identify inter-locked traps in multi-dimensional poverty by exploiting household panel data. Firewood plantations offer a short-term solution. Increasing labour productivity and providing agricultural loans can break the circle in the longterm. Institutional instruments in terms of subsidising households to converting the cultivated land to forest or pasture play a limited role in limiting firewood production.

Suggested Citation

  • You, Jing & Kontoleon, Andreas & Wang, Sangui, 2015. "Identifying a Sustainable Pathway to Household Multi-dimensional Poverty Reduction in Rural China," 2015 Conference, August 9-14, 2015, Milan, Italy 211865, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae15:211865
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    File URL: http://purl.umn.edu/211865
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    References listed on IDEAS

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    More about this item

    Keywords

    poverty; energy; firewood; dynamic causal effect; China; Consumer/Household Economics; Food Security and Poverty; International Development; C33; I31; Q23; O53;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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