Table 2.

Effect of the ratio of forest area (7.5-km radius) on access to clean drinking water (two-stage least-square estimation)

Regression stage	1	2	3	4
First-stage regression
Dependent variable	Ratio of forest area
Latitude $\times$ time dummy	0.0297*** (0.00441)	0.0305*** (0.00445)	0.0305*** (0.00444)	0.0305*** (0.00444)
Log of rainfall	−0.0987** (0.0421)	−0.0919** (0.0419)	−0.0922** (0.0419)	−âĹŠ0.0925** (0.0418)
Kleibergen–Paap	45.45	46.95	47.16	47.23
$R^2$	0.948	0.949	0.949	0.949
Second-stage regression
Dependent variable	Clean drinking water dummy
Ratio of forest area	1.063** (0.494)	0.959** (0.465)	0.922** (0.455)	0.932** (0.453)
Log of rainfall	0.610*** (0.169)	0.569*** (0.163)	0.577*** (0.160)	0.566*** (0.159)
$R^2$	0.252	0.256	0.263	0.266
Control variables
Log of population		Yes	Yes	Yes
Temperature		Yes	Yes	Yes
Demographic characteristics			Yes	Yes
Household wealth				Yes
N	9,682	9,682	9,682	9,682

The clustering robust standard errors are in parentheses, assuming that the error terms are correlated within each cluster × year cell. The endogenous variable is the ratio of forest area and is instrumented by the latitude × time dummy. Top and middle sections display the results of the first- and second-stage regressions, respectively. All columns in top and middle sections include the cluster fixed effect, time fixed effect, log of rainfall, and cluster-level initial values×time dummy as control variables. Bottom section displays the specification of additional control variables. * indicates significant at 10%; ** indicates significant at 5%; *** indicates significant at 1%.