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Impacts of conditional cash transfer on agricultural production and implications for the use of natural resources in rural and poor areas of Peru: Evidence from a quasi-experimental approach

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  • Cesar Del Pozo Loayza

    (Innovations for Poverty Action, Cusco)

Abstract

This paper examines whether conditional cash transfer programs have an impact on agriculture in rural Peru. Using data from household surveys and quasi-experimental methods, I found a negative impact on production from such programs on agricultural activities. Impact estimates are found to be similar across geographic regions of Peru. To understand this finding, I estimate the impacts on additional indicators of the quality of rural livelihoods, including education, health care, expenditures, income and labor supply. Overall impacts of program offer mixed results, such as, program increases school attendance, health checks, and expenditures on food, but the program has a disincentive effect on labor supply. The impact of conditional cash transfer program on agriculture in Peru implies a reduction on agricultural livelihood activities; however, implications for the use of natural resources are not conclusive.

Suggested Citation

  • Cesar Del Pozo Loayza, 2012. "Impacts of conditional cash transfer on agricultural production and implications for the use of natural resources in rural and poor areas of Peru: Evidence from a quasi-experimental approach," Working Papers 201249, Latin American and Caribbean Environmental Economics Program, revised 2012.
    • Handle: RePEc:lae:wpaper:201249
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    File URL: http://laceep.org/publications/working-papers/item/172-impacts-of-conditional-cash-transfer-on-agricultural-production-and-implications-for-the-use-of-natural-resources-in-rural-and-poor-areas-of-peru-evidence-from-a-quasi-experimental-approach-cesar-del-pozo-2012
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