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Environmental Dependence of Mexican Rural Households: Exploring the Role of Income, Shocks, Rules and Roads

Author

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  • Alejandro López-Feldman

    (Division of Economics, CIDE)

Abstract

This paper examines the impact that household and village level characteristics have on environmental dependence and participation in resource extraction decisions. Contrary to previous studies that have used case studies or regional samples, I use a nationally representative sample of rural households. Econometric results show that participation in resource extraction follows an inverted U-shaped relationship with income and that environmental dependence decreases with income. Nevertheless, environmental income is very significant for the relatively rich households that do participate in extraction. Beyond income, results show that relatively wealthy households in rural Mexico are less likely to participate in resource extraction and have lower dependence than those with less wealth. There is also evidence that natural resources provide some sort of insurance for households that receive negative agricultural shocks. Finally, I also find evidence showing that natural resource management rules increase participation and environmental dependence while households in isolated villages are more dependent on environmental income.

Suggested Citation

  • Alejandro López-Feldman, 2012. "Environmental Dependence of Mexican Rural Households: Exploring the Role of Income, Shocks, Rules and Roads," Working papers DTE 528, CIDE, División de Economía.
    • Handle: RePEc:emc:wpaper:dte528
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    File URL: http://www.economiamexicana.cide.edu/RePEc/emc/pdf/DTE/DTE528.pdf
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    References listed on IDEAS

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    Cited by:

    1. World Bank, 2013. "Using Natural Resources in an Optimal Way," World Bank Publications - Reports 16574, The World Bank Group.

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    More about this item

    Keywords

    Environmenta income; Natural resources; Dependence; Poverty; Mexico;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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