with the 15‐percent sample of the 2009 Population and Housing Census as calculated by Lanjouw et al. (2013). In addition, household consumption is calculated from the VHLSS 2010, 2012, and 2014 based on detailed expenditure data in line with the methodology for determining the GSO‐World Bank poverty line. All consumption values are expressed in 2011 Purchasing Power Parity (PPP) values using data on the Consumer Price Index from the World Development Indicators.

These consumption estimates are used for the household‐level analyses differentiating between different socioeconomic groups and rural and urban areas. In rural areas 6,600‐6,750 households from about 2,200 communes in each year are included (‘Pooled’ cross section), 1,400 of them observed in all three rounds, 1,600 of them in 2010 and 2012, and 1,400 in 2012 and 2014 (‘Panel’ data set). In urban areas, the data set covers 2,650‐2,780 households in each year from 900 communes (‘Pooled’), 500 of them in all three rounds, 575 in 2010 and 2012, and 640 in 2012 and 2014 (‘Panel’).

The household and commune surveys in the VHLSS 2010, 2012, and 2014 also include a wide array of data on socioeconomic conditions. Data at the individual‐level include demographics, education, employment, health, and migration. At the household‐level data comprise information on durables, assets, production, income, and participation in government programs. The commune surveys collect information about the commune characteristics including access to land, infrastructure and services. Based on these data a number of socioeconomic controls are constructed for the analyses based on household and commune surveys (the summary statistics can be found in Table A.1).

# **2.2 Environmental risk data**

Based on geo‐spatial data sets, variables are constructed to measure environmental risk at district and commune levels representing 8 environmental risks. These variables are based on historical risk profiles measuring the area’s exposure to fragile and severe conditions and not the actual environmental conditions at the time of the VHLSS surveys. The following variables are calculated to measure environmental risks at the district and commune levels (the summary statistics can be found in Table A.1):

**1) Air pollution** is measured by the area‐weighted mean of concentration (measured as micrograms per cubic meter) of particulate matter with a diameter of 2.5 micrometers or less (PM2.5) taking the 10 years‐ average value for 2000‐2010. The data is based on satellite imaginary using the total column aerosol optical depth from the Moderate Resolution Imaging Spectroradiometer (MODIS) and Multiangle Imaging Spectroradiometer satellite instruments, which is combined with chemical transport model simulations, and ground measurements from 79 countries to produce a global spatial data set with 0.1° × 0.1° resolution (Brauer et al., 2015). PM2.5 includes dust, dirt, soot, smoke, and liquid droplets, which can lodge deeply into the lungs due to their small size. PM2.5 air pollution has been identified as a leading risk factor for global diseases (Forouzanfar et al., 2015).

**2) Tree cover loss** is calculated as the share of the area under tree cover in 2000 that suffered from a tree cover loss between 2000 and 2010. Tree cover is defined as canopy closure for all vegetation taller than 5m in height and is calculated from imagery from the Landsat 4, 5, 7, and 8 satellite data used to produce a global

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