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| 1 |
ID:
185147
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| Summary/Abstract |
This study examines poor households’ vulnerability to idiosyncratic and covariate shocks in Pakistan. First, it observes households’ socioeconomic, demographic, and geographic factors that influence the incidence of shocks. Second, it examines households coping strategies adopted to mitigate the negative effects of these shocks. For this purpose, we have studied the shock patterns in poor households and examined the role of the Benazir Income Support Program (BISP) in protecting these households against various shocks. Results indicate simultaneous exposure of idiosyncratic and covariate shocks to the targeted households. Moreover, with a low level of physical and financial assets owned by these households, they resort to coping strategies which are further damaging in nature. We also analyzed shock coping strategies of the sampled households and found that informal coping mechanisms are more prevalent among the poor households when hit by shocks. We have concluded that BISP is ineffective in protecting households in times of shocks and it is thus suggested that the transfers under this program should be generous in size and responsive to shocks in order to be an effective coping strategy for the poor.
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| 2 |
ID:
176113
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| Summary/Abstract |
This paper evaluates the effects of cash transfers program, that is, the Benazir Income Support Program (BISP) on environmental poverty using household data. A multidimensional environmental poverty index (EPI), based on four dimensions of environmental services, namely, dwelling, water, sanitation, and energy, is developed using the Alkire-Foster method. EPI shows that about 57% of households face multidimensional environmental poverty in the sample group. Our empirical analysis, based on regression discontinuity design, indicates that BISP cash transfers have a negative and significant impact on environmental poverty. This empirical evidence implies that cash transfers increase the use of environmental services among BISP beneficiaries. The effects of cash transfers on environmental poverty vary from one province to another, which emphasizes the importance of regional differences and heterogeneities. The impacts of BISP cash transfers on various dimensions of environmental poverty, such as dwelling, water, sanitation, and energy, also differ across provinces. The government should expand social protection programs to overcome environmental poverty with a focus on the use of environmental services. However, any efforts to reduce environmental poverty through cash transfers may depend on household preferences and availability of environmental services.
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