Journal of Quantitative Economics

, Volume 17, Issue 1, pp 167–196 | Cite as

Drivers of Forest Ecosystem Change in Purnapani Area: Empirical Evidence and Policy Suggestions

  • Narendra N. DaleiEmail author
  • Yamini Gupt
Original Article


Purnapani area of Sundargarh district of Indian state of Odisha was primarily dominated by tribal people with natural forest ecosystems. The local tribal people were mostly depending upon forest and agriculture for their livelihood. During 1958 Purnapani Limestone and Dolomite Quarry (PL&DQ) started mining of lime stone and dolomite in the area. The total land contributed by Purnapani villagers for mining, township and railway line construction was 569.64 acres. In 2003, the mines were closed and about 2000 mine workers lost their livelihood. During the last 50–60 years, unsustainable mining activities and then their abandonment have degraded the forest ecosystem and livelihood resource base of local communities in the Purnapani area. Thus in order to identify the major drivers of degraded forest ecosystems we have conducted primary surveys in Purnapani area. Using regression analyses we find that both mining activities and passenger transport services are the drivers of population growth in Purnapani area. Livelihood of local tribal people is being positively impacted by mining activity and passenger transport services operating from Purnapani area. Fuel wood consumption increases over time due to population growth which put great pressure on forest ecosystems to change. Both mineral production and population size have impacted human well-being negatively by positively impacting health expenditure. The amount of decline of community welfare in terms of net present value derived by the communities from extraction of forest resources is due to mine spoiled degraded forest ecosystem services. From our analysis we recommend that large-scale ecological restoration is necessary to protect the environment and to restore the resilience of ecosystem services in this area.


Ecosystem Livelihood Mining Forest 



The authors thank the Department of Biotechnology (DBT), Government of India for financial support to carry out this study through the project entitled, “Environmental Biotechnology Restoration Ecology” sanctioned to the Centre for Environmental Management of Degraded Ecosystem (CEMDE), University of Delhi. The authors are grateful for the support provided by CEMDE for research and analysis and the logistic support provided by Purnapani Limestone and Dolomite Quarry (PL&DQ), Steel Authority of India (SAIL) to carry out the primary surveys. The authors acknowledge that they are responsible for the views expressed in this study, and DBT, SAIL, and CEMDE are no way responsible for any kind of inference drawn out of this study. The authors appreciate the valuable comments of the anonymous referees.


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Copyright information

© The Indian Econometric Society 2018

Authors and Affiliations

  1. 1.Department of Economics, School of BusinessUniversity of Petroleum and Energy StudiesDehradunIndia
  2. 2.Department of Business EconomicsUniversity of Delhi South CampusNew DelhiIndia

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