Effects of forest resources on income distribution and poverty (Case study: watershed of Tang Tamoradi)

Forestry makes a significant contribution to the alleviation of poverty. We examine an area in south – west of Iran in province of Kohgiloie and Boier Ahmad, watershed of Tange Tamoradi. We applied poverty and inequality measures to rural household data set to explore the impacts of forest resource extraction on household welfare. For collecting data, we used questionnaire. According to poverty line for rural areas of province of Kohgiloie and Boier Ahmad, we measure these poverty indices: Head Count Ratio, Poverty Gap ratio, FGT and Sen in two stages (with and without forest income). For measuring income inequality, Gini coefficient in two staged (with and without forest income) was used. We also used simulations of changes in the indices of poverty to explore that if the rewards from certain categories of income are raised, what will happen for poverty indices. For all simulation (are chosen based on development document of province and our observation), the income from forestry was set equal to zero. We investigated their effects on poverty indices if income of household increases from other sources increase in the price of cucumber, improving rural road condition, cultivate and collect Myrtus communis, fishery and orchard. Forest income contributed significantly to household's total income. Our findings suggested that natural resource extraction reduces both poverty and inequality, so that restricting access to forest will increase poverty. Results showed that increases in household income from all scenarios take a significant number of households above the poverty line and significant effect on poverty indices. The results of this study can help to improve rural household welfare and forest conservation.