The Environmental Income of the Poor

Environmental income is income generated from ecosystem goods and services. Although definitions of what exactly constitutes environmental income vary, it generally refers to the value that individuals or communities derive from natural resources. Though the income differs depending on the ecosystem, the community, and various other factors, environmental income has been found to be nearly universally important to poor households. Like ecosystem goods and services, environmental income can be derived in several distinct ways. Income might accrue to households through direct use of the ecosystem services, for instance consuming bushmeat, or using wood products in home construction. Where markets exist, goods found in ecosystems can be sold for cash, or exchanged for goods like tuition. Finally, if appropriate governance regimes are in place, households can collect money from stumpage fees or through other taxes on use of the natural environment in which they live.

Environmental income is especially important for the poor because it often constitutes a large share of their cash income. As per capita income rises, the cash value of environmental income may become relatively less important, even as the overall contribution of the income may rise. In many rural communities, the poor remain trapped because they lack the necessary empowerment, access and education to find consistent wage labor. Without wage income, households lack the cash to purchase fuel, food, and assets. To substitute, they use natural resources, often in the form of charcoal, fuelwood, and food from home gardens. Poverty reduction strategies must take into account this relationship if they are truly going to make sustained and sustainable improvements in the well-being of the world's poor.