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On the Effects of Wildfires on Poverty in Bolivia

Author

Listed:
  • Canavire Bacarreza, Gustavo J.

    (World Bank)

  • Puerta-Cuartas, Alejandro

    (Universidad Carlos III de Madrid)

  • Ramos, Andrey

    (Universidad Carlos III de Madrid)

Abstract

This paper examines the impact of severe wildfire events on Bolivia's poverty and labor market outcomes. We use a panel from 2005 to 2020 utilizing NASA's MODIS Collection-6 MCD64A1 burned area product and household surveys. To attain survey representativeness at a lower geographical level, we aggregate neighboring municipalities using the max-p-region algorithm. Using the Interactive Fixed Effects Counterfactual Estimator, we estimate the causal effects of severe wildfire events on poverty, household per-capita income, and the agricultural sector. We find a significant short-term increase in poverty explained by a temporary decline in household per capita and, specifically, agricultural labor income.

Suggested Citation

  • Canavire Bacarreza, Gustavo J. & Puerta-Cuartas, Alejandro & Ramos, Andrey, 2024. "On the Effects of Wildfires on Poverty in Bolivia," IZA Discussion Papers 16988, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16988
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    References listed on IDEAS

    as
    1. Nielsen-Pincus, Max & Moseley, Cassandra & Gebert, Krista, 2014. "Job growth and loss across sectors and time in the western US: The impact of large wildfires," Forest Policy and Economics, Elsevier, vol. 38(C), pages 199-206.
    2. Juan C. Duque & Luc Anselin & Sergio J. Rey, 2012. "The Max-P-Regions Problem," Journal of Regional Science, Wiley Blackwell, vol. 52(3), pages 397-419, August.
    3. Laurent Gobillon & Thierry Magnac, 2016. "Regional Policy Evaluation: Interactive Fixed Effects and Synthetic Controls," The Review of Economics and Statistics, MIT Press, vol. 98(3), pages 535-551, July.
    4. Canavire-Bacarreza, Gustavo & Duque, Juan Carlos & Urrego, Joaquin A., 2016. "Moving Citizens and Deterring Criminals: Innovation in Public Transport Facilities," Research Department working papers 978, CAF Development Bank Of Latinamerica.
    5. Jushan Bai, 2009. "Panel Data Models With Interactive Fixed Effects," Econometrica, Econometric Society, vol. 77(4), pages 1229-1279, July.
    6. Imai, Kosuke & Kim, In Song, 2021. "On the Use of Two-Way Fixed Effects Regression Models for Causal Inference with Panel Data," Political Analysis, Cambridge University Press, vol. 29(3), pages 405-415, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    poverty; counterfactual estimators; natural disasters;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets

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