Abstract

Poor rural households in developing countries often endure many-faceted burdens including monetary poverty, nutrition deficiency and energy shortage due to reliance on limited local natural resources with low utilisation efficiency. We investigate a sustained pathway in rural China to escape the vicious circle between three important dimensions of poverty – deficiency of income, malnutrition and low energy consumption profile in terms of reliance on firewood. By exploiting household panel data, we identify three inter-locking deprivations. Firewood plantations offer short-term solutions to break them through income effects, while the effective long-term means are increasing agricultural labour productivity and provision of agricultural loans. There are no household-level returns to rural electrification or infrastructure.This research is supported by the Fundamental Research Funds for the Central Universities, and the Research Funds of Renmin University of China (Grant No.: 15XNA005)

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