Poverty and Deforestation Nexus: an Economic Analysis of Cause and Effect Relationship in Malakand Division, Pakistan

Rural poverty is perhaps the main cause of deforestation and vice versa. This two-way relationship appears to exist in a slightly greater form in rural communities worldwide. To analyse the same relationship empirically, a study was conducted in Malakand Division, of Khyber Pakhtunkhwa, Pakistan. The data was collected from one hundred and eighty respondents through a self-administered questionnaire. Data was analysed using a non-recursive two-stage linear regression model and descriptive statistics. The findings revealed a two-way relationship between poverty and deforestation in the area under study. It was established that rural communities have low-income levels and rely heavily on natural resources, particularly the forest sector, for their fundamental survival and subsistence needs. The survey also shows that environmental deterioration in the form of deforestation is severe in the Malakand Division and that the majority of people are unaware of the necessity of environmental conservation. It is recommended that the government through strict regulations and by taking practical steps towards poverty reduction, may stop deforestation in the area under study.