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The Economics of Regional Poverty-Environment Programs: An Application for Lao People's Democratic Republic

Author

Listed:
  • Buys, Piet
  • Chomitz, Kenneth
  • Dasgupta, Susmita
  • Deichmann, Uwe
  • Larsen, Bjorn
  • Meisner, Craig
  • Nygard, Jostein
  • Pandey, Kiran
  • Pinnoi, Nat
  • Wheeler, David

Abstract

Program administrators are often faced with the difficult problem of allocating scarce resources among regions in a country when interventions are aimed at addressing multiple objectives. One main concern is the tradeoff between poverty reduction and improvement of environmental quality. To provide a framework for analysis, the authors develop a model of optimal budget allocation that allows for variations in three factors: administrators'valuation of objectives; their willingness to accept tradeoffs among objectives and regional allotments; and regional administrative costs. The results from an application of this model using information for Lao People's Democratic Republic show that simple poverty indicators alone do not provide consistent guidelines for policy. However, when different poverty indicators are embedded in an optimizing model that incorporates preferences and costs, the resulting provincial allocations are very similar. This suggests that adoption of a formal analytical approach to resource allocation can help promote the harmonization of regional policy guidelines.

Suggested Citation

  • Buys, Piet & Chomitz, Kenneth & Dasgupta, Susmita & Deichmann, Uwe & Larsen, Bjorn & Meisner, Craig & Nygard, Jostein & Pandey, Kiran & Pinnoi, Nat & Wheeler, David, 2004. "The Economics of Regional Poverty-Environment Programs: An Application for Lao People's Democratic Republic," Policy Research Working Paper Series 3267, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3267
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    References listed on IDEAS

    as
    1. Simler, Kenneth R. & Nhate, Virgulino, 2005. "Poverty, inequality, and geographic targeting: evidence from small-area estimates in Mozambique," FCND discussion papers 192, International Food Policy Research Institute (IFPRI).
    2. Behrman, Jere R & Pollak, Robert A & Taubman, Paul, 1982. "Parental Preferences and Provision for Progeny," Journal of Political Economy, University of Chicago Press, vol. 90(1), pages 52-73, February.
    3. 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.
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    Cited by:

    1. Dasgupta, Susmita & Hammer, Dan & Kraft, Robin & Wheeler, David, 2013. "A resource allocation model for tiger habitat protection," Policy Research Working Paper Series 6495, The World Bank.
    2. Dasgupta, Susmita & Hossain, Md. Moqbul & Huq, Mainul & Wheeler, David, 2014. "Climate change, soil salinity, and the economics of high-yield rice production in coastal Bangladesh," Policy Research Working Paper Series 7140, The World Bank.

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