I was 23 when I first ventured into rural India as a research assistant to examine how women harvested, traded and earned income from a fruit from the Uppage (Garcinia Cambogia) tree. The seeds were collected for their oil by local women, until markets opened up for the fruit, which had value as a condiment in a neighboring region. This led to changes in demand, and harvest rights began to be auctioned by the government. The Uppage case presents a classic story of access to new markets leading to partial privatization of common property, with consequences for both conservation and income distribution. Of course, I knew little about environmental economics then. But this foray into rural India exposed me to many elements of environment and development problems – the challenges of managing the commons, the possibility of markets leading to overexploitation of resources and growth in employment, the idea of institutional change contributing to multiple winners and losers with poor women being left behind on the bottom rung, and so on. This had a life-changing influence, leading me eventually to branch out and specialize in this area.
Can benefit-cost analysis (BCA) be used in the developing world in the same way in which it is used in developed market economies? The paper by Arrow et al. makes a good case for employing BCA to evaluate environmental, health, and safety regulations in the United States. It offers a number of principles to guide the use of benefit-cost analyses, some of which can be applied to developing countries. Conservation policies in the tropics can help illustrate the relevance of BCA for evaluating regulations in less industrialized countries. I use a set of studies on the Mantadia National Park to show in practical terms how and when BCA can serve as an effective evaluative tool.
AbstractThe Indian economy has grown rapidly at 6–8 per cent per year since 1995 and planners aim to sustain an 8 per cent growth rate in the next years. Growth has created considerable optimism about India and its place in the world. After many years of little change, poverty appears to be on the decline with an estimated 5–7 per cent reduction in the late 1990s (Sundaram and Tendulkar, 2003a, b, c; Deaton, 2005). Life expectancy increased from 59 years in 1991 to 64 years in 2008 and the primary school completion rate was at 96 per cent in 2008 (World Bank, 2012). Economic growth has resulted in a boom in the manufacturing and service sectors, large investments in infrastructure and energy projects, and a soaring middle class.
This special issue focuses on environmental problems related to poverty and economic growth in South Asia and seeks to illustrate the types of economic analyses that can be undertaken to address these problems. The idea for this issue emerged at the inauguration of the South Asian Network of Development and Environmental Economics (SANDEE). The papers presented at SANDEE's inaugural conference demonstrated the need for a tighter connection between environmental and development economics. The study of environmental change in poor countries benefits a great deal from well-established theoretical and empirical investigations of externalities and valuation of non-market goods, the staple of environmental economics as taught in the West. However, it is also closely tied to questions about institutions and why they succeed or fail. The spatial nature of dependence of the poor on local resources also matters. Further, the study of environmental change and of institutions cannot be divorced from policies and economic reforms in poor countries. These are some of the topics discussed in this collection.
We develop a framework to conceptualize the multiple ways forests contribute to poverty reduction and inform development interventions in forest landscapes. We identify five key strategies for reducing poverty in forest landscapes: a) improvements in productivity (P) of forest land and labor; b) governance reform to strengthen community, household and women's rights (R) over forests and land; c) investments (I) in institutions, infrastructure and public services that facilitate forest-based entrepreneurship; d) increased access to markets (M) for timber or non-timber forest products; and e) mechanisms that enhance and enable the flow of benefits from forest ecosystem services (E) to the poor. We test the utility of the framework through a review of the forestry portfolio of the World Bank Group, the largest public investor in forestry. Many of these projects include several, but not all, PRIME components. We devote particular attention to forest-related investments in two contrasting countries, Vietnam and Mexico, to examine synergies among the pathways. Results suggest that each strategy in the PRIME framework may play an important role in alleviating poverty, but pronounced impacts may require multiple pathways to be jointly pursued. The PRIME framework can guide research to address knowledge gaps on pathways to prosperity in forest landscapes, serve as an easily remembered checklist for managers, and nudge forest program designers in government and development organizations, who are interested in poverty reduction, to focus on the importance of both a comprehensive framework and synergies across different pathways.
AbstractMany cities in developing countries lack adequate drainage and waste management infrastructure. Consequently, city residents face economic and health impacts from flooding and waterlogging, which are aggravated by solid waste infiltrating and blocking drains. City governments have recourse to two strategies to address these problems: a) 'hard' infrastructure-related interventions through investment in the expansion of drainage and waste transportation networks; and/or, b) 'soft', low-cost behavioural interventions that encourage city residents to change waste disposal practices. This research examines whether behavioural interventions, such as information and awareness raising alongside provision of inexpensive street waste bins, can improve waste management in the city. We undertook a cluster randomized controlled trial study in Bharatpur, Nepal, where one group of households was treated with a soft, low-cost intervention (information and street waste bins) while the control group of households did not receive the intervention. We econometrically compared baseline indicators – perceived neighbourhood cleanliness, household waste disposal methods, and at-source waste segregation – from a pre-intervention survey with data from two rounds of post-intervention surveys. Results from analysing household panel data indicate that the intervention increased neighbourhood cleanliness and motivated the treated households to dispose their waste properly through waste collectors. The intervention, however, did not increase household waste segregation at source, which is possibly because of municipal waste collectors mixing segregated and non-segregated waste during collection. At-source segregation, a pre-requisite for efficiently managing municipal solid waste, may improve if municipalities arrange to collect and manage degradable and non-degradable waste separately.
Although intentional use of fires to transform land has decreased globally (1, 2), particularly among highly capitalized countries through regulatory and market-oriented approaches and moral suasion, regulatory strategies have been less effective in southern and eastern Asia (see table S21). Some densely populated agricultural regions in China and India buck the global trend, showing increases in agricultural fires (2). This is particularly true in northwestern India, where rice residue burning makes a substantial contribution to air pollution and short-lived climate pollutants (3, 4). Regulations are in place to reduce agricultural fires, but burning continues because of uncertainty regarding policy implementation and regarding access and returns to alternative technologies. With the field burning season soon upon us, we synthesize emerging evidence on alternatives to burning, clarify the business case for alternative practices, identify remaining uncertainties, and discuss approaches to increase their widespread adoption. Often, there are difficult trade-offs between environmental improvement and profitable economic opportunities. The case of crop residue management in northwestern India does not appear to fit this pattern and provides lessons that may be useful elsewhere. Some of the least healthy air in the world is in India (5), where polluted air is the second-highest health risk factor (6). Seasonal smog imposes enormous costs, such as major transportation disruptions and the closure of 4000 schools in Delhi in November 2017 (7). The risks peak during October and November with the burning of rice crop residues in agricultural areas (8, 9). During this period, crop residue burning contributes to major particulate pollution in Delhi and northern India (9–11). Eighty percent of agriculture in northwestern India's Indo-Gangetic plains is based on a rice-wheat cropping system (∼4.1 million ha). Concerns over groundwater withdrawals have led to a planting cycle that allows the rice crop to benefit from monsoon rains. This cycle creates a short period (∼10 to 20 days) to harvest rice, manage rice crop residue, and plant wheat. Many of the 2.5 million farmers in northwestern India prepare for wheat planting by burning an estimated 23 million metric tons of rice residue in their fields (12). India's national government recognizes both the air pollution risks and the crucial role of crop residue burning. Despite federal and state regulations since 2014 and related advisories and bans, directives against burning have been only partially enforced. The reluctance to enforce existing policies arises, in part, from the belief that profitable alternatives to burning crop residue do not exist. Any alternative to crop residue burning must be feasible, affordable, and capable of scaling to adoption by thousands of farmers. Burning could be avoided by changing the overall cropping system (e.g., growing different crops) or by adopting different rice-wheat management practices. The focus to date has been on these latter options, which we include in the scope of this study. After mechanical harvesting of rice, farmers in northwestern India have different options for sowing wheat. All options include some combination of rice residue treatments (mulching by cutting and on-field distribution, baling and removal from the field, incorporation by tilling into the field, and on-field burning), land preparation (no additional preparation, rotavate, disc and tine harrow, and plank), and seeding of wheat (using Happy Seeders, conventional seeders, other zero-till seeders, and rotaseeders). Not all combinations of these options are regularly used in northwestern India, and we focus on 10 combinations that are commonly practiced or are viewed as potentially scalable (fig. S1). The majority of farmers currently choose to burn rice straw, plow fields, and sow wheat using conventional seeders. Given variation in practices, we evaluate the public and private costs and benefits and potential scalability of 10 alternative farming options, three of which result in residue burning.