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Journal Article: Disproving the Conventional Wisdom: Both Rich and Poor Depend on Natural Resources in Rural India. Resources. In: Resources for the Future, Washington DC.
|Theme(s)||Agriculture, Climate, Forest, Water|
|Method(s)||Economic Modelling, Policy Instruments, Social Analysis|
Given the dual existence of high levels of poverty and dependence on local common resources, the question arises as to whether improved natural resources management can form the basis of poverty alleviation policies in rural India.
The authors began their research by collecting household and village-level data from a random sample of households in Madhya Pradesh. A key finding of the study contradicts conventional wisdom: dependence on natural resources does not decline with rising income, where dependence is defined as the share of total income that households derive from natural resources. Instead, dependence follows a U-shaped relationship with income, that is, dependence on natural resources first decreases and then increases with income.
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