Person: Damania, Richard
Sustainable Development Practice Group, The World Bank
Author Name Variants
Fields of Specialization
Development Economics, Environmental Economics, Natural Resource Economics, Agricultural Economics, Water Economics, Game Theory
Externally Hosted Work
Last updated: November 29, 2023
Richard Damania is the Chief Economist of the Sustainable Development Practice Group. He has held several positions in the World Bank including as Senior Economic Advisor in the Water Practice, Lead Economist in the Africa Region’s Sustainable Development Department, in the South Asia and Latin America and Caribbean Regions of the World Bank. His work has spanned across multiple sectors and has helped the World Bank become an acknowledged thought-leader on matters relating to environment, water and the economy. Prior to joining the World Bank he held positions in academia and has published extensively with over 100 papers in scientific journals.
Publication Search Results
Now showing 1 - 7 of 7
PublicationTransport Infrastructure and Welfare: An Application to Nigeria(World Bank, Washington, DC, 2015-05) Ali, Rubaba; Barra, Alvaro Federico; Berg, Claudia N.; Damania, Richard; Nash, John; Russ, JasonTransport infrastructure is deemed to be central to development and consumes a large fraction of the development assistance envelope. Yet there is debate about the economic impact of road projects. This paper proposes an approach to assess the differential development impacts of alternative road construction and prioritize various proposals, using Nigeria as a case study. Recognizing that there is no perfect measure of economic well-being, a variety of outcome metrics are used, including crop revenue, livestock revenue, non-agricultural income, the probability of being multi-dimensionally poor, and local gross domestic product for Nigeria. Although the measure of transport is the most accurate possible, it is still endogenous because of the nonrandom placement of road infrastructure. This endogeneity is addressed using a seemingly novel instrumental variable termed the natural path: the time it would take to walk along the most logical route connecting two points without taking into account other, bias-causing economic benefits. Further, the analysis considers the potential endogeneity from nonrandom placement of households and markets through carefully chosen control variables. It finds that reducing transportation costs in Nigeria will increase crop revenue, non-agricultural income, the wealth index, and local gross domestic product. Livestock sales increase as well, although this finding is less robust. The probability of being multi-dimensionally poor will decrease. The results also cast light on income diversification and structural changes that may arise. These findings are robust to relaxing the exclusion restriction. The paper also demonstrates how to prioritize alternative road programs by comparing the expected development impacts of alternative New Partnership for Africas Development projects. PublicationHighways to Success or Byways to Waste: Estimating the Economic Benefits of Roads in Africa(Washington, DC: World Bank; and Agence Française de Développement, 2015-10) Ali, Rubaba; Barra, A. Federico; Berg, Claudia; Damania, Richard; Nash, John; Russ, JasonRoads are the arteries through which the world’s economies pulse. Roads connect sellers to markets, workers to jobs, students to education, and the sick to hospitals. Yet in much of the developing world—and particularly in Africa—adequate roads are lacking. Accordingly, investment in transportation remains a key strategy for development agencies. Roughly $6.8 billion per year is spent in Sub-Saharan Africa on paving roads, and the World Bank invests more on roads than on education, health, and social services combined. Despite the large sums spent on transportation, there have been no assessments to determine whether these significant investments help or hinder outcomes, and the methodologies for evaluating which road projects to fund or not to fund have been disjointed and unreliable. Highways to Success or Byways to Waste: Estimating the Economic Benefits of Roads in Africa hopes to establish a new methodology for prioritizing funding that can be applied to diverse scenarios, regions, and projects. This book demonstrates how modern econometrics and geospatial techniques can be combined to analyze the latest available geo-referenced datasets at the smallest possible scale to answer some of the most important questions in development. Aimed at researchers from across the spectrum of international development, this book seeks to be a reference guide for all who seek new tools and insights into the many issues, both technical and nontechnical, of this important field. PublicationWhen Good Conservation Becomes Good Economics: Kenya’s Vanishing Herds(World Bank, Washington, DC, 2019-10-07) Damania, Richard; Scandizzo, Pasquale Lucio; Mikou, Mehdi; Gohil, Deepali; Said, MohammedIt is no exaggeration to state that Kenya’s wildlife has done much to shape the image and development fortunes of the country. Today tourism is among Kenya’s top sources of foreign exchange, dominates the service sector, and contributes significantly to employment, especially in rural areas where economic opportunities are limited. The typical international tourist arrives on a package tour that may include a safari, a visit to the beach, or both. It is safari tourism, however, that generates the most employment and economic activity across the country. But the wildlife that has lured travelers to Kenya by the planeload is in dramatic decline. In the past three decades, the country has lost more than half of its wildlife. Wild herds that once roamed freely across the borders of Kenya and Tanzania have shrunk dramatically in numbers and vanished completely from much of the North. Perhaps most troubling is that recent monitoring of wildlife populations suggests that long-term declines of many of the charismatic species that attract tourists like lions, elephants, giraffes, impalas, and others are occurring at the same rates within the country’s national parks as outside of these protected areas. This report identifies with greater precision the drivers of land conversion from natural habitats to other uses, and examines the extent to which land conversion leads to the extirpation of wildlife and the loss of tourism incomes. PublicationThe Nitrogen Legacy: The Long-Term Effects of Water Pollution on Human Capital(World Bank, Washington, DC, 2020-02) Desbureaux, Sebastien; Zaveri, Esha; Russ, Jason; Ribeiro, Giovanna; Damania, Richard; Rodella, Aude-SophieThe fallout of nitrogen pollution is considered one of the largest global externalities facing the world, impacting air, water, soil, and human health. This paper combines data from the Demographic and Health Survey data set across India, Vietnam, and 33 African countries to analyze the causal links between pollution exposure experienced during the very earliest stages of life and later-life health. The results show that pollution exposure experienced in the critical years of development—from birth until age three—is associated with decreased height as an adult, a well-known indicator of overall health and productivity, and is robust to several statistical checks. Because adult height is related to education, labor productivity, and income, this also implies a loss of earning potential. The analysis begins within an assessment in India, where the data are more available, and is then extended to geographic settings including Vietnam and 33 countries in Africa. The results are consistent and show that early-life exposure to nitrogen pollution in water can lower height-for-age scores during childhood in Vietnam and during infancy in Africa. These findings add to the evidence on the enduring consequences of water pollution and identify a critical area for policy intervention. PublicationEcosystems : Burden or Bounty?(World Bank, Washington, DC, 2014-05) Damania, Richard; Glauber, A.JThis paper presents a somewhat novel approach to explore the economic contribution of ecosystems. It develops linked models to capture connections between resource stocks and flows and the resulting microeconomic and macroeconomic impacts. A bioeconomic model is developed that is imbedded into a computable general equilibrium (CGE) model. Incorporating imperfect regulation, the bioeconomic model characterizes optimal policies, while the CGE model explores the economy-wide consequences of possible changes to the ecosystem. The model is parameterized and calibrated to the case of the Serengeti ecosystem which is perhaps the most intensively researched biome with a relative abundance of data. This ecosystem is also undergoing rapid change from a host of factors related to developments within and around the protected area system. The analysis identifies the contribution of the ecosystem to the economy and finds that changes in tourism and bushmeat hunting have surprisingly diffuse economy-wide impacts, that are especially large in the rural sector. To guard against overstatement, ecosystem impacts are under-stated relative to other effects. The results suggest that linkages to the natural resource sector (backward and forward multipliers) are important and neglecting these may lead to biased estimates. PublicationThe Nitrogen Legacy: The Long-Term Effects of Water Pollution on Human Capital(World Bank, Washington, DC, 2019-12-10) Zaveri, Esha; Russ, Jason; Damania, Richard; Rodella, Aude-SophieThe fallout of nitrogen pollution is considered one of the largest global externalities facing the world, impacting air, water soil and human health. This paper presents new evidence that nitrogen pollution in water is an important determinant of variations in human capital. Data from the Demographic and Health Survey dataset across India, Vietnam, and 33 African countries are combined to analyze the causal links between pollution exposure experienced during the very earliest stages of life and later-life health. Results show that pollution exposure experienced in the critical years of development from the period of birth up until year three – is associated with decreased height as an adult, a well-known indicator of overall health and productivity, and is robust to several statistical checks. Because adult height is related to education, labor productivity, and income, this also implies a loss of earning potential. Results are consistent and show that early-life exposure to nitrogen pollution in water can lower height-for-age scores during childhood in Vietnam and during infancy in Africa. These findings add to the evidence on the enduring consequences of water pollution and identify a critical area for policy intervention. PublicationAgricultural Technology Choice and Transport(World Bank, Washington, DC, 2015-05) Ali, Rubaba; Barra, A. Federico; Berg, Claudia N.; Damania, Richard; Nash, John D.; Russ, JasonThis paper addresses an old and recurring theme in development economics: the slow adoption of new technologies by farmers in many developing countries. The paper explores a somewhat novel link to explain this puzzle -- the link between market access and the incentives to adopt a new technology when there are non-convexities. The paper develops a theoretical model to guide the empirical analysis, which uses spatially disaggregated agricultural production data from Spatial Production Allocation Model and Living Standards Measurement Study survey data for Nigeria. The model is used to estimate the impact of transport costs on crop production, the adoption of modern technologies, and the differential impact on returns of modern versus traditional farmers. To overcome the limitation of data availability on travel costs for much of Africa, road survey data are combined with geographic information road network data to generate the most thorough and accurate road network available. With these data and the Highway Development Management Model, minimum travel costs from each location to the market are computed. Consistent with the theory, analysis finds that transportation costs are critical in determining technology choices, with a greater responsiveness among farmers who adopt modern technologies, and at times a perverse (negative) response to lower transport costs among those who employ more traditional techniques. In sum, the paper presents compelling evidence that the constraints to the adoption of modern technologies and access to markets are interconnected, and so should be targeted jointly.