Job Market Paper. I estimate the impact of rural poverty alleviation on forest conservation by analyzing the implementation of a large-scale poverty alleviation effort across more than 100 counties in contiguous areas of extreme poverty in rural China, beginning in 2011.I find that rural poverty alleviation had a positive impact on forest cover, with an annual marginal effect of an 18 km2 increase in forest area. The value of marginal carbon storage—estimated using the social cost of carbon—approximates five times the cost of poverty alleviation.These findings highlight a novel, highly cost-effective approach to conserve forests through poverty alleviation efforts.
