Identifying a Sustainable Pathway to Household Multi-dimensional Poverty Reduction in Rural China

Jing You, Andreas Kontoleon and Sangui Wang

No 211865, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: Poor rural households in developing countries usually endure many-faceted burdens including monetary poverty, nutrition deficiency, and energy shortage due to reliance on limited local natural resources with low utilisation efficiency. This paper investigates a pathway for rural Chinese households to escape the vicious circle between multi-dimensional low wellbeing including deficiency of income, nutrition and energy without relying simply on excessive firewood plantations. We propose a dynamic and recursive multi-equation mixed model to capture the complex, endogenous, and causal inter-play between the above three dimensions of poverty and households’ environment-related livelihood arrangement, namely firewood plantations. We identify inter-locked traps in multi-dimensional poverty by exploiting household panel data. Firewood plantations offer a short-term solution. Increasing labour productivity and providing agricultural loans can break the circle in the longterm. Institutional instruments in terms of subsidising households to converting the cultivated land to forest or pasture play a limited role in limiting firewood production.

Keywords: Consumer/Household Economics; Food Security and Poverty; International Development (search for similar items in EconPapers)
Pages: 31
Date: 2015
New Economics Papers: this item is included in nep-agr, nep-cna and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:211865

DOI: 10.22004/ag.econ.211865

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