Natural resource extraction and household welfare in rural Laos

Research output: Contribution to journalArticleResearchpeer review

Authors

  • Trung Thanh Nguyen
  • Truong Lam Do
  • Ulrike Grote

External Research Organisations

  • Vietnamese Academy of Science and Technology
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Details

Original languageEnglish
Pages (from-to)3029-3038
Number of pages10
JournalLand Degradation and Development
Volume29
Issue number9
Publication statusPublished - 21 Jun 2018

Abstract

Degradation of natural resources is a threat to sustainable development in many developing countries. Solving this requires an understanding of the factors affecting the extraction of and the dependence on the resources as well as the impacts on rural welfare. In this study, we identify the factors affecting the extraction of and the dependence on forest and water resources and examine the impacts of the extraction on rural household welfare in Laos. We address our research questions with an econometric framework that models the extraction and its implications simultaneously. We use the data of 430 rural households from a survey undertaken in 2013 in 38 villages of Savannakhet Province. Our findings show that extracting forest and water resources is a shock-coping strategy of rural households but contributes to reducing household income inequality. For extracting households, the extraction increases household income, consumption, and food security. However, for nonextracting households, although participating in the extraction would increase food security, it would reduce their income and consumption. We suggest that promoting rural education and off-farm employment opportunities and enhancing investments in physical infrastructures would reduce the extraction of and the dependence on the resources of extractors and prevent nonextractors from being forced to extract the resources.

Keywords

    counterfactual analysis, endogenous switching regression, environmental income, Laos, sustainable livelihoods framework

ASJC Scopus subject areas

Sustainable Development Goals

Cite this

Natural resource extraction and household welfare in rural Laos. / Nguyen, Trung Thanh; Do, Truong Lam; Grote, Ulrike.
In: Land Degradation and Development, Vol. 29, No. 9, 21.06.2018, p. 3029-3038.

Research output: Contribution to journalArticleResearchpeer review

Nguyen TT, Do TL, Grote U. Natural resource extraction and household welfare in rural Laos. Land Degradation and Development. 2018 Jun 21;29(9):3029-3038. doi: 10.1002/ldr.3056
Nguyen, Trung Thanh ; Do, Truong Lam ; Grote, Ulrike. / Natural resource extraction and household welfare in rural Laos. In: Land Degradation and Development. 2018 ; Vol. 29, No. 9. pp. 3029-3038.
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