Restoring Nature, Creating Wealth: Evidence from Rural Households in Africa
Human-driven degradation of ecosystems threatens both global biodiversity and the livelihoods of communities that depend on natural systems for production and income. Yet evidence on the economic returns to restoring nature remains scarce. We examine whether nature-enhancing interventions raise household wealth alongside their environmental benefits. Studying a large-scale agroecological intervention across farms in sub-Saharan Africa, we combine high-resolution satellite imagery with detailed household surveys and show that increases in natural capital generate substantial gains in wealth, proxied by satellite-based estimates and livestock ownership. We also document large increases in tree cover and crop diversity, together with improvements in food security and dietary diversity. Restoring natural capital therefore yields both ecological and economic returns, offering a scalable pathway for nature-positive development in rural economies where biodiversity remains a critical productive asset.
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Copy CitationGeoffrey Heal, Claudio Rizzi, and Simon Xu, "Restoring Nature, Creating Wealth: Evidence from Rural Households in Africa," NBER Working Paper 34929 (2026), https://doi.org/10.3386/w34929.Download Citation
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