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On the Effects of Wildfires on Poverty in Bolivia

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  • Canavire Bacarreza, Gustavo J.

    (World Bank)

  • Puerta-Cuartas, Alejandro

    (Universidad Carlos III de Madrid)

  • Ramos, Andrey

    (Universidad Carlos III de Madrid)

Abstract

This paper examines the impact of severe wildfire events on Bolivia's poverty and labor market outcomes. We use a panel from 2005 to 2020 utilizing NASA's MODIS Collection-6 MCD64A1 burned area product and household surveys. To attain survey representativeness at a lower geographical level, we aggregate neighboring municipalities using the max-p-region algorithm. Using the Interactive Fixed Effects Counterfactual Estimator, we estimate the causal effects of severe wildfire events on poverty, household per-capita income, and the agricultural sector. We find a significant short-term increase in poverty explained by a temporary decline in household per capita and, specifically, agricultural labor income.

Suggested Citation

  • Canavire Bacarreza, Gustavo J. & Puerta-Cuartas, Alejandro & Ramos, Andrey, 2024. "On the Effects of Wildfires on Poverty in Bolivia," IZA Discussion Papers 16988, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16988
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    Keywords

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    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets

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