Dil Bahadur Rahut

Livelihood Diversification Strategies in the Himalayas

This article examines livelihood diversification strategies of rural households using survey data from the Himalayas. We present and explore an analytical framework that yields different activity choices as optimal solutions to a simple utility maximization problem. By classifying the range of activities of rural households into a few distinct categories based on their profitability and by considering portfolios of farm and nonfarm activities, we provide novel insights into diversification behaviour of rural households. The evidence shows that while the poor are mainly agricultural labourers and work in the low-return non-farm sector, the better-off diversify in high-return nonfarm activities. As expected, we find strong evidence that education plays a major role in accessing more remunerative non-farm employment. A somewhat less intuitive finding is that larger household size is associated with higher probability of diversification into the high-return non-farm sector. The finding that the farm size is not a constraint to diversification in lucrative non-farm employment is also surprising. Geographical location plays a role in diversification behaviour of rural households indicating the importance of local context.

Do forest resources help increase rural household income and alleviate rural poverty? Empirical evidence from Bhutan

Abstract About 73% of Bhutan’s land area is currently under forest coverage, and the forest occupies a potentially important position in promoting rural livelihood and thereby alleviating the poverty of people living in and around the forest. This study uses data from the Bhutan Living Standard Survey to examine the relative contribution of wood and non-wood-based forest products to rural household income and poverty alleviation. It uses a propensity score matching approach to correct for potential sample selection bias that may arise due to systematic differences between households who exploit forest resources and those who do not. Our results show that rural households with forestry related activities have a higher income and are less prone to poverty than those who do not exploit forest resources. However, the increase in income due to forestry activities is in general limited, although this increase may be substantial for the poorest households, representing up to 25% of their income. Our results also confirm the global trend that wood-based forest products are more economically rewarding than non-wood forest products. We conclude with some policy implications underlining the potential of the development of forest activities for the betterment of the rural poor in Bhutan.

Measuring Farm and Market Level Economic Impacts of Improved Maize Production Technologies in Ethiopia: Evidence from Panel Data

While it is often recognised that agricultural technology adoption decisions are intertwined and best characterised by multivariate models, typical approaches to examining adoption and impacts of agricultural technology have focused on single technology adoption choice and ignored interdependence among technologies. We examine farm†and market†level impacts of multiple technology adoption choices using comprehensive household survey data collected in 2010/11 and 2012/13 in Ethiopia. Economic surplus analysis combined with panel data switching endogenous regression models are used to compute the supply shift parameter (K†shift parameter), while at the same time controlling for the endogeneity inherent in agricultural technology adoption among farmers. We find that our improved technology set choices have significant impacts on farm†level maize yield and maize production costs, where the greatest effect appears to be generated when various technologies are combined. The change in maize yield and production costs results in an average 26.4% cost reduction per kilogram of maize output (the K†shift parameter). This increases the producer and consumer surpluses by US

Domestic use of dirty energy and its effects on human health: empirical evidence from Bhutan

140 and US

The use and determinants of solar energy by Sub-Saharan African households

105 million per annum, respectively. These changes in economic surplus help to reduce the number of poor people by an estimated 788 thousand per year. We conclude that deliberate extension efforts and other policies that encourage integration of technologies are important for maize technologies to yield their full potential at both farm and market levels.

Evolving food consumption patterns of rural and urban households in developing countries: A Bangladesh case

ABSTRACT Use of dirty fuels such as fuelwood, charcoal, cow dung and kerosene is common in developing countries, which adversely affects the health of people living in the dwellings, especially children and women. Using the data from a comprehensive and nationally representative Bhutan Living Standard Survey 2012, the present study examines the effects of dirty fuels on human health and household health expenditure. The result from propensity score-matching approach indicate that households using dirty fuels have a higher incidence of respiratory disease by 2.5–3% compared to households using cleaner fuels. The chances of household contracting tuberculosis are higher for households using dirty fuel in the range of 5–6%. It is also observed that the incidence of eye diseases and health expenditures among households using dirty fuels is higher. Hence the policy should focus on providing access to clean sources of energy to wider population.

Enhancing smallholder access to agricultural machinery services : lessons from Bangladesh

ABSTRACT Using data from Ethiopia’s, Tanzania’s, and Uganda’s Living Standards Measurement Surveys (LSMS), this article explains the factors affecting the choice of solar energy for domestic purposes. Econometric results reveal that household demographics such as the household size and its composition including the number of adult males, the number of children under 15 years, the level of education of the household head and household wealth play major roles in the choice of solar energy. It clearly establishes that, with the increase in the household head’s education level, the probability of using solar energy increases progressively. Wealthier families are more likely to use solar energy compared to relatively poorer families. Ethiopia and Tanzania are found to have a higher probability of adopting solar energy compared to Uganda. Energy policy should focus on augmenting the level of education and income for scaling up the adoption of solar energy.

Understanding the factors that influence household use of clean energy in the Similipal Tiger Reserve, India

Purpose Population and income are growing rapidly in South Asia, spurring the demand for food in general, and the demand for higher-valued food items in particular. This poses particular food security challenges for densely populated and emerging countries, such as Bangladesh. The purpose of this paper is to analyze the increasing and changing cereal consumption pattern in developing countries using Bangladesh as a case. Design/methodology/approach Using Bangladesh’s Household Income and Expenditure Survey 2000, 2005a, b data, and applying a two-stage quadratic almost ideal system estimation procedure, the present study separately estimates the expenditure elasticities for rural and urban households for five food items: rice, wheat and rice and wheat products, pulses, fish and vegetables. Second, using the estimated elasticities, projected population and the per capita GDP growth rates, this study projects the consumption of the sampled food items by 2030. Findings This study demonstrates that in 2030 both rural and urban households in Bangladesh will consume more wheat, pulses and fish, but the urban households will consume less rice compared to the current levels of consumption in 2015. Originality/value To the authors’ knowledge, this is the first study on developing countries that examines the evolving food items consumption separately by rural and urban households. Using Bangladesh as a case, this study warns that with rapid urbanization and income growth, developing countries need to supply more wheat, fish and pulses. The provision of the maximum usage of scarce resources, such as arable land, the development and dissemination of improved varieties and the best management practices must be ensured to boost domestic food production in developing countries to cater to the future evolving food consumption.

Maize Market Participation among Female- and Male-Headed Households in Ethiopia

Abstract Resource poor smallholders in developing countries often lack access to capital goods such as farm machinery. Enabling adequate access through machinery services can thereby significantly contribute to food security and farm incomes. At the core of the service provision model is the lead farmer, who makes the initial investment in agricultural machinery, and provides services to others on a fee-for-service basis. Profiling the lead farmers can thereby provide important lessons and scaling implications. The present paper provides a case study of Bangladesh, using primary data to characterise the lead farmers. General education, credit availability and risk taking attitude play significant roles in whether or not a farm household will be a lead farmer in Bangladesh.

Impacts of changing weather patterns on smallholder well-being: Evidence from the Himalayan region of northern Pakistan

Biotic pressure in and around protected areas (PA) is the primary cause of biodiversity loss in many developing countries across the globe. The pressure comes partly from biomass energy dependency in the form of heavy extraction of fuelwood from the forests. Although biomass fuels provide easily accessible and affordable sources of domestic energy to the rural masses, their combustion results in environmental and health†related hazards. The objectives of this paper are to assess the patterns of household energy use in a subsistence forest economy and analyze the factors that influence their energy use choice for cooking and lighting. The paper uses primary data collected randomly from 244 households located in and around the Similipal Tiger Reserve (STR), situated in the eastern Indian state of Odisha. Age of the household head, number of days in wage employment, number of adult males and females in a household, education of the household head and landholding size are found to be the major variables that determine household fuelwood collection sources inside the reserve. Considering household structure as an income indicator, the analysis clearly shows that non†poor households prefer to use clean energy (i.e. solar) for lighting, while poor households tend to use solid fuel. Energy policies for development should be based on the realistic proposition that fuelwood will remain the major source of energy for cooking for substantial proportions of the world’s population. Promotion of public education, social forestry schemes and fuel†efficient improved chulhas should be encouraged in order to reduce household dependence on fuelwood. Moreover, devolving sufficient property rights over forest resources to local communities may help secure their broad†based and active participation in the decision†making process, which may result in a positive change in the attitude of the local people towards biodiversity conservation.