skip to main content
US FlagAn official website of the United States government
dot gov icon
Official websites use .gov
A .gov website belongs to an official government organization in the United States.
https lock icon
Secure .gov websites use HTTPS
A lock ( lock ) or https:// means you've safely connected to the .gov website. Share sensitive information only on official, secure websites.


Title: An integrated bioeconomic local economy-wide assessment of the environmental impacts of poverty programs
A new generation of poverty programs around the globe provides cash payments to poor and vulnerable households. Studies show that these social cash transfer programs create income and welfare benefits for poor households and the local economies where they live. However, this may come at the cost of damaging local environments if cash payments stimulate food production that conflicts with natural resource conservation. Evaluations of the economic impacts of poverty programs do not account for the welfare consequences of environmental impacts, which are potentially large for poor communities closely tied to natural resources. We use an ex-ante policy simulation tool, a bioeconomic local computable general equilibrium model parameterized with microsurvey data, to analyze the expected welfare consequences of environmental degradation caused by a cash transfer program. For a Philippine fishing community that is a net importer of fish, we show that a government cash transfer program initially increases real incomes for all households. However, increased demand for fish leads to a decline in the local fish stock that reduces program benefits. Household groups experience declines in real income benefits of 2–63%, with fishing households suffering the largest declines. Impacts on local fish stocks depend on the extent to which markets link fishing communities to outside regions through trade. Greater market integration can mitigate the fish stock decline, but this reduces the local income benefits of cash transfers.  more » « less
Award ID(s):
1734999
PAR ID:
10171488
Author(s) / Creator(s):
; ;
Date Published:
Journal Name:
Proceedings of the National Academy of Sciences
Volume:
116
Issue:
14
ISSN:
0027-8424
Page Range / eLocation ID:
6737 to 6742
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
More Like this
  1. null (Ed.)
    Sustainable development (SD) policies targeting marine economic sectors, designed to alleviate poverty and conserve marine ecosystems, have proliferated in recent years. Many developing countries are providing poor fishing households with new fishing boats (fishing capital) that can be used further offshore as a means to improve incomes and relieve fishing pressure on nearshore fish stocks. These kinds of policies are a marine variant of traditional SD policies focused on agriculture. Here, we evaluate ex ante economic and environmental impacts of provisions of fishing and agricultural capital, with and without enforcement of fishing regulations that prohibit the use of larger vessels in nearshore habitats. Combining methods from development economics, natural resource economics, and marine ecology, we use a unique dataset and modeling framework to account for linkages between households, business sectors, markets, and local fish stocks. We show that the policies investing capital in local marine fisheries or agricultural sectors achieve income gains for targeted households, but knock-on effects lead to increased harvest of nearshore fish, making them unlikely to achieve conservation objectives in rural coastal economies. However, pairing an agriculture stimulus with increasing enforcement of existing fisheries’ regulations may lead to a win–win situation. While marine-based policies could be an important tool to achieve two of the United Nations Sustainable Development Goals (alleviate poverty and protect vulnerable marine resources), their success is by no means assured and requires consideration of land and marine socioeconomic linkages inherent in rural economies. 
    more » « less
  2. How large economic stimuli generate individual and aggregate responses is a central question in economics, but has not been studied experimentally. We provided one‐time cash transfers of about USD 1000 to over 10,500 poor households across 653 randomized villages in rural Kenya. The implied fiscal shock was over 15 percent of local GDP. We find large impacts on consumption and assets for recipients. Importantly, we document large positive spillovers on non‐recipient households and firms, and minimal price inflation. We estimate a local transfer multiplier of 2.5. We interpret welfare implications through the lens of a simple household optimization framework. 
    more » « less
  3. Abstract Flooding remains a major problem for the United States, causing numerous deaths and damaging countless properties. To reduce the impact of flooding on communities, the U.S. government established the Community Rating System (CRS) in 1990 to reduce flood damages by incentivizing communities to engage in flood risk management initiatives that surpass those required by the National Flood Insurance Program. In return, communities enjoy discounted flood insurance premiums. Despite the fact that the CRS raises concerns about the potential for unevenly distributed impacts across different income groups, no study has examined the equity implications of the CRS. This study thus investigates the possibility of unintended consequences of the CRS by answering the question: What is the effect of the CRS on poverty and income inequality? Understanding the impacts of the CRS on poverty and income inequality is useful in fully assessing the unintended consequences of the CRS. The study estimates four fixed‐effects regression models using a panel data set of neighborhood‐level observations from 1970 to 2010. The results indicate that median incomes are lower in CRS communities, but rise in floodplains. Also, the CRS attracts poor residents, but relocates them away from floodplains. Additionally, the CRS attracts top earners, including in floodplains. Finally, the CRS encourages income inequality, but discourages income inequality in floodplains. A better understanding of these unintended consequences of the CRS on poverty and income inequality can help to improve the design and performance of the CRS and, ultimately, increase community resilience to flood disasters. 
    more » « less
  4. Abstract Fishing communities are increasingly required to adapt to environmentally driven changes in the availability of fish stocks. Here, we examined trends in the distribution and biomass of five commercial target species (dover sole, thornyheads, sablefish, lingcod, and petrale sole) on the US west coast to determine how their availability to fishing ports changed over 40 years. We show that the timing and magnitude of stock declines and recoveries are not experienced uniformly along the coast when they coincide with shifts in species distributions. For example, overall stock availability of sablefish was more stable in southern latitudes where a 40% regional decline in biomass was counterbalanced by a southward shift in distribution of >200 km since 2003. Greater vessel mobility and larger areal extent of fish habitat along the continental shelf buffered northerly ports from latitudinal changes in stock availability. Landings were not consistently related to stock availability, suggesting that social, economic, and regulatory factors likely constrain or facilitate the capacity for fishers to adapt to changes in fish availability. Coupled social–ecological analyses such as the one presented here are important for defining community vulnerability to current and future changes in the availability of important marine species. 
    more » « less
  5. Abstract Income-based energy poverty metrics ignore people’s behavior patterns, particularly reducing energy consumption to limit financial stress. We investigate energy-limiting behavior in low-income households using a residential electricity consumption dataset. We first determine the outdoor temperature at which households start using cooling systems, the inflection temperature. Our relative energy poverty metric, theenergy equity gap, is defined as the difference in the inflection temperatures between low and high-income groups. In our study region, we estimate the energy equity gap to be between 4.7–7.5 °F (2.6–4.2 °C). Within a sample of 4577 households, we found 86 energy-poor and 214 energy-insecure households. In contrast, the income-based energy poverty metric, energy burden (10% threshold), identified 141 households as energy-insecure. Only three households overlap between our energy equity gap and the income-based measure. Thus, the energy equity gap reveals a hidden but complementary aspect of energy poverty and insecurity. 
    more » « less