Environmental Dependence of Mexican Rural Households: Exploring the Role of Income, Shocks, Rules and Roads

Alejandro Lopez-Feldman

No DTE 528, Working Papers from CIDE, División de Economía

Abstract: This paper examines the impact that household and village level characteristics have on environmental dependence and participation in resource extraction decisions. Contrary to previous studies that have used case studies or regional samples, I use a nationally representative sample of rural households. Econometric results show that participation in resource extraction follows an inverted U-shaped relationship with income and that environmental dependence decreases with income. Nevertheless, environmental income is very significant for the relatively rich households that do participate in extraction. Beyond income, results show that relatively wealthy households in rural Mexico are less likely to participate in resource extraction and have lower dependence than those with less wealth. There is also evidence that natural resources provide some sort of insurance for households that receive negative agricultural shocks. Finally, I also find evidence showing that natural resource management rules increase participation and environmental dependence while households in isolated villages are more dependent on environmental income.

Keywords: Environmenta income; Natural resources; Dependence; Poverty; Mexico (search for similar items in EconPapers)
JEL-codes: I32 O13 Q56 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2012-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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