Time Preference and Natural Resource Use by Local Communities: The Case of Sinharaja Forest in Sri Lanka

Poverty significantly drives higher rates of time preference (IRTP) among local communities, leading to increased harvesting of forest resources from Sinharaja. This study demonstrates that individuals with lower incomes prioritize immediate gains over long-term sustainability, resulting in greater exploitation of natural reserves. Using a simultaneous equation model, researchers found that addressing poverty in peripheral communities is crucial for effective long-term conservation strategies. The findings underscore the need for integrated approaches that combine economic interventions with environmental management to protect UNESCO-listed sites like Sinharaja.

Gunatilake, H., Wickramasinghe, W., & Abeygunawardena, P. (2012). Time Preference and Natural Resource Use by Local Communities: The Case of Sinharaja Forest in Sri Lanka. Sri Lankan Journal of Agricultural Economics, 10(0), 31. https://doi.org/10.4038/sjae.v10i0.4590