On the Effects of Wildfires on Poverty in Bolivia

Gustavo J. Canavire Bacarreza (), Alejandro Puerta-Cuartas and Andrey Ramos ()
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Gustavo J. Canavire Bacarreza: World Bank
Andrey Ramos: Universidad Carlos III de Madrid
Authors registered in the RePEc Author Service: Gustavo Javier Canavire-Bacarreza

No 16988, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper examines the impact of severe wildfire events on Bolivia's poverty and labor market outcomes. We use a panel from 2005 to 2020 utilizing NASA's MODIS Collection-6 MCD64A1 burned area product and household surveys. To attain survey representativeness at a lower geographical level, we aggregate neighboring municipalities using the max-p-region algorithm. Using the Interactive Fixed Effects Counterfactual Estimator, we estimate the causal effects of severe wildfire events on poverty, household per-capita income, and the agricultural sector. We find a significant short-term increase in poverty explained by a temporary decline in household per capita and, specifically, agricultural labor income.

Keywords: poverty; counterfactual estimators; natural disasters (search for similar items in EconPapers)
JEL-codes: I32 J43 Q54 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2024-05
New Economics Papers: this item is included in nep-dev, nep-env and nep-lma
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