Firewood Collections and Economic Growth in Rural Nepal 1995-2010: Evidence from a Household Panel

43 Pages Posted: 19 Mar 2013

See all articles by Jean-Marie Baland

Jean-Marie Baland

Facultés Universitaires Notre-Dame de la Paix (FUNDP)

Francois Libois

University of Namur

Dilip Mookherjee

Boston University - Department of Economics

Date Written: March 2013

Abstract

A household panel data set is used to investigate the effects of economic growth on firewood collection in Nepal between 1995 and 2010. Results from preceding cross-sectional analyses are found to be robust: (a) rising consumptions for all but the top decile were associated with increased firewood collections, contrary to the Poverty-Environment hypothesis; (b) sources of growth matter: increased livestock was associated with increased collections, and falling household size, increased education, non-farm business assets and road connectivity with reduced collections. Nepal households collected 25% less firewood over this period, mostly explained by falling livestock, and rising education, connectivity and out-migration.

Keywords: deforestation, Environmental Kuznets Curve, growth, Nepal

JEL Classification: D12, O1, Q2

Suggested Citation

Baland, Jean-Marie and Libois, Francois and Mookherjee, Dilip, Firewood Collections and Economic Growth in Rural Nepal 1995-2010: Evidence from a Household Panel (March 2013). CEPR Discussion Paper No. DP9394, Available at SSRN: https://ssrn.com/abstract=2235492

Jean-Marie Baland (Contact Author)

Facultés Universitaires Notre-Dame de la Paix (FUNDP) ( email )

8 Rempart de la Vierge
B-5000 Namur
Belgium

Francois Libois

University of Namur ( email )

No Address Available

Dilip Mookherjee

Boston University - Department of Economics ( email )

270 Bay State Road
Boston, MA 02215
United States
617-353-4392 (Phone)
617-353-4143 (Fax)

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