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Income and the Environment in Rural India: Is There a Poverty Trap?

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  • Haimanti Bhattacharya
  • Robert Innes

Abstract

We study the relationships between rural income distributions and changes in environmental conditions in southern, western and central India between 1994--95 and 2000--01. Other than the relatively rich, we find that all income strata benefit from an improved environment, and intermediate expenditure households benefit more than the very poor in absolute terms. Higher median consumption expenditures and "richness" are estimated to increase environmental decline, but we do not find a significant impact of income poverty on local environmental health. The results do not support the "poverty trap" conjecture, with environmental degradation driving expenditure reductions that promote offsetting aforestation (which benefits the poor). Copyright 2013, Oxford University Press.

Suggested Citation

  • Haimanti Bhattacharya & Robert Innes, 2013. "Income and the Environment in Rural India: Is There a Poverty Trap?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(1), pages 42-69.
    • Handle: RePEc:oup:ajagec:v:95:y:2013:i:1:p:42-69
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    File URL: http://hdl.handle.net/10.1093/ajae/aas121
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    Cited by:

    1. Sandler, Austin M. & Rashford, Benjamin S., 2018. "Misclassification error in satellite imagery data: Implications for empirical land-use models," Land Use Policy, Elsevier, vol. 75(C), pages 530-537.
    2. Lin MA & Jiayu HU, 2018. "An Analysis of the Eco-Innovation Mechanism and Policies in the Pulp and Paper Industry Based on Coupled Game Theory and System Dynamics," Sustainability, MDPI, vol. 10(10), pages 1-25, September.
    3. Jagger, Pamela & Cheek, Jennifer Zavaleta & Miller, Daniel & Ryan, Casey & Shyamsundar, Priya & Sills, Erin, 2022. "The Role of Forests and Trees in Poverty Dynamics," Forest Policy and Economics, Elsevier, vol. 140(C).
    4. Edward B. Barbier & Jacob P. Hochard, 2019. "Poverty-Environment Traps," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1239-1271, November.

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