Working Paper: CEPR ID: DP9394
Authors: Jean-Marie Baland; Francois Libois; Dilip Mookherjee
Abstract: A household panel data set is used to investigate the effects of economic growth on firewood collection in Nepal between 1995 and 2010. Results from preceding cross-sectional analyses are found to be robust: (a) rising consumptions for all but the top decile were associated with increased firewood collections, contrary to the Poverty-Environment hypothesis; (b) sources of growth matter: increased livestock was associated with increased collections, and falling household size, increased education, non-farm business assets and road connectivity with reduced collections. Nepal households collected 25% less firewood over this period, mostly explained by falling livestock, and rising education, connectivity and out-migration.
Keywords: Deforestation; Environmental Kuznets Curve; Growth; Nepal
JEL Codes: D12; O1; Q2
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| increased household per capita consumption (D10) | rising firewood collections (L73) |
| decrease in household size (D19) | reduced firewood collections (Q23) |
| decrease in livestock ownership (Q15) | reduced firewood collections (Q23) |
| increased average village assets (P32) | negative impact on individual firewood collection (Q23) |