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.
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Livelihood diversity and fishing skill during COVID-19 lockdowns in French Polynesia
Small-scale fisheries provide seafood for billions of people and are one of the largest employers in many coastal communities. Those households engaged in these fisheries who maintain diverse income sources are generally thought to be better prepared to cope with social or ecological perturbations such as the crises presented by the COVID-19 pandemic. One outcome of the COVID-19 crisis was the collapse of international tourism after many nations instituted strict border controls to slow the virus’s spread, severely impacting coastal communities that depend on tourism-related employment. This research assessed the effects of COVID-19-induced collapse of tourism on small-scale coral reef fishers and households in Moorea, French Polynesia. Ninety-five households were surveyed about their livelihoods, fishing, demographics, and income-generating occupations before and after the lockdown. Shifts in fish biomass were evaluated using time series data collected through underwater visual surveys, and roadside fish vendors were surveyed to assess fish sales. Results showed that after tourism employment evaporated more Moorea households began fishing to boost their incomes and food security. However, the increase in fishing pressure showed no appreciable decline in the biomass of fishable species. The households responsible for the increased fishing activities were those who were working in the tourism economy prior to the pandemic and subsequently lost their jobs. Households that combined fishing with construction or other stable sectors showed greater abilities to cope, while those combining fishing with tourism were heavily impacted. Importantly, results showed that those households devoted solely to fishing managed the crisis adeptly due to their superior fishing skills and ecological knowledge. This pattern suggests that not all forms of household livelihood diversification confer equal advantages and that resource-dependent households are not necessarily intrinsically less resilient. More generally, it is argued that we should be cautious when promoting livelihood diversification as a blanket solution to decrease household vulnerability, and that ecological knowledge diversity is underappreciated.
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- Award ID(s):
- 2224354
- PAR ID:
- 10591821
- Publisher / Repository:
- Frontiers
- Date Published:
- Journal Name:
- Frontiers in Marine Science
- Volume:
- 11
- ISSN:
- 2296-7745
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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