Title: Risk attitudes of forest dependent communities: evidence from Andhra Pradesh, India

Authors: Sundar Balakrishna; Vineet Virmani

Addresses: Department of Information Technology, Electronics, and Communications, Government of Andhra Pradesh, Vijayawada, Andhra Pradesh, India ' Faculty, Finance and Accounting Area, Indian Institute of Management, Ahmadabad, Gujarat, India

Abstract: This study presents evidence on the risk attitudes of forest dependent communities from two geographically distinct regions of Andhra Pradesh, India in the context of joint forest management program begun by the Government of India since 1990. We study the risk attitudes of the forest dependent communities (FDCs) using data from the Indian state of Andhra Pradesh in two geographical regions - Rayalaseema (a dry forest region) and the coastal region (forests with fertile soil). Attitudes towards risk were measured as the revealed degree of risk aversion from the multiple price list methodology. We identify socioeconomic determinants of their risk levels. For members of FDCs from Rayalaseema, income did not contribute to risk attitudes. For those from the coastal region, evidence shows that members from the low and high income groups were found to be risk seeking and those from the middle income groups risk averse.

Keywords: Andhra Pradesh; forest dependent communities; FDCs; incomes; India; joint forest management; multiple price methodology; risk attitudes.

DOI: 10.1504/IJDSRM.2023.142140

International Journal of Decision Sciences, Risk and Management, 2023 Vol.11 No.1/2/3/4, pp.1 - 22

Received: 24 May 2021
Accepted: 10 Aug 2022
Published online: 10 Oct 2024 *

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