The Economics of Regional Poverty-Environment Programs: An Application for Lao People's Democratic Republic
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World Bank, Washington, D.C.
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Program administrators are often faced
with the difficult problem of allocating scarce resources
among regions in a country when interventions are aimed at
addressing multiple objectives. One main concern is the
tradeoff between poverty reduction and improvement of
environmental quality. To provide a framework for analysis,
the authors develop a model of optimal budget allocation
that allows for variations in three factors:
administrators' valuation of objectives; their
willingness to accept tradeoffs among objectives and
regional allotments; and regional administrative costs. The
results from an application of this model using information
for Lao People's Democratic Republic show that simple
poverty indicators alone do not provide consistent
guidelines for policy. However, when different poverty
indicators are embedded in an optimizing model that
incorporates preferences and costs, the resulting provincial
allocations are very similar. This suggests that adoption of
a formal analytical approach to resource allocation can help
promote the harmonization of regional policy guidelines.
Palabras clave
AIR POLLUTION, ASSET INDICATORS, AVERAGE POVERTY, BUDGET ALLOCATIONS, BUDGETARY ALLOCATIONS, CASE STUDIES, COST FUNCTIONS, COUNTRY CONDITIONS, DEFORESTATION, DIMINISHING RETURNS, ECONOMICS, ELASTICITIES, ENVIRONMENTAL DEGRADATION, ENVIRONMENTAL IMPROVEMENT, ENVIRONMENTAL PROBLEM, ENVIRONMENTAL PROBLEMS, ENVIRONMENTAL PROTECTION, ENVIRONMENTAL QUALITY, ENVIRONMENTAL RESOURCES, EXPENDITURES, FISHERIES, GDP, GEOGRAPHIC TARGETING, INCOME, INCOME HOUSEHOLDS, INDIVIDUAL POVERTY, LOCAL CONDITIONS, MACRO POLICY, NATIONAL LEVEL, NATIONAL LEVELS, NATIONAL POVERTY, POLICY RESEARCH, POLITICAL ECONOMY, POLLUTION, POOR, POOR HOUSEHOLDS, POOR PEOPLE, POOR PERSON, POOR PERSONS, POVERTY ERADICATION, POVERTY GAP, POVERTY INCIDENCE, POVERTY INDICATORS, POVERTY LINE, POVERTY REDUCTION, POVERTY SEVERITY, PROGRAMS, QUALITY OF SERVICES, REGIONAL POVERTY, RELATIVE POVERTY, RESOURCE ALLOCATION, RESOURCE CONSERVATION, RURAL AREAS, RURAL POPULATION, SCALE ECONOMIES, SERVICE DELIVERY, SOIL DEGRADATION, SUBSTITUTION ELASTICITIES, SUSTAINABLE DEVELOPMENT, TECHNICAL ASSISTANCE, TRADEOFFS, WELFARE FUNCTION, WILLINGNESS TO ACCEPT POVERTY MITIGATION, ADMINISTRATIVE BUDGETS, ADMINISTRATIVE COSTS, ALLOTMENTS, POVERTY INDICATORS, PROVINCIAL FINANCES, RESOURCE ALLOCATION