Time Preference and Natural Resource Use by Local Communities: The Case of Sinharaja Forest in Sri Lanka
Abstract
This paper investigates the impact of individual rate of time preference (IRTP) on forest resources harvesting from the Sinharaja forest in Sri Lanka. The impact of IRTP on the harvest rate of forest resources was tested using a simultaneous equation model. Analyses show that low income results in a higher IRTP, indicating that poverty is an important determinant of the IRTP. Further, the results show that individuals with a higher rate of time preference harvest more forest resources. Overall, the results suggest that long-term strategies for management of nature reserves would require poverty alleviation in the peripheral communities, among other measures.
Sri Lankan Journal of Agricultural Economics Vol.10/11 (2008/2009) 31-60
© 2012 HM Gunatilake, WAR Wickramasinghe, P Abeygunawardena, published by Sri Lanka Agricultural Economics Association
This work is licensed under the Creative Commons License.