Some ideas for the analysis of PEN-global data Victoria Reyes-García ICREA Researcher Institut de Ciència i Tecnologia Ambientals Universitat Autònoma de Barcelona Spain 27 March 2009

1) Happiness in the rural tropics Does economic growth in itself guarantee well-being? Easterlin paradox: Happiness economists have found that 1) Within a society, rich people tend to be happier than poor people. 2) But, rich societies tend not to be happier than poor societies. 3) As countries get richer, they do not get happier. “Hedonic treadmill": we move but we remain in place (adaptation) Findings are now debated

Happiness in the rural tropics Q: How does income relates to happiness in rural households in the tropic? Analysis Analysis at the individual level Smiles/life satisfaction vs relative income Smiles/life satisfaction vs absolute income Analysis by groups depending on level of market integration

2) Income inequality and use of Forest products Evidence from PEN presentations: Poor households depend more on forest-based income than rich-households Q: Are income inequality and dependance in forest-use resources related? Hypothesis: Use of forest resources has a negative association with income inequality Analysis: Village income inequality vs. Avg village forest income Policy Implications: measures that reduce access to forest-based resources will increase income inequality Strength of PEN 300 + villages

3) Agricultural and forest income: Do they complement or substitute each other? Research suggests that rural hh diversify as a livelihood strategy, but economics predicts that –given the appropriate conditions- people would specialize Q: If economists predictions are right, we should see that as hh agricultural income increases, hh forest income decreases. But might be: In poor hh: Use of forest resources complements agriculture In rich hh: Agriculture substitutes forest income Analysis: HH Forest income vs HH agricultural income (controling for hh total income) Theoretical Implications: transition from foraging to farming

Other crazy ideas Does specialization in income sources increases income inequality? What is the economic value of forest? (data on local population?) Does land tenure decreases pressure on the forest? The role of palms in household subsistence/cash income …

Think out of the box! Thanks!