Environmental degradation that undermines the provision of environmental services decreases the well-being of rural households. In addition, as rural households tend to be characterised by limited social capital; poor access to social services, job opportunities and income-generating activities; and high levels of deprivation, they are more vulnerable to environmental change, and have little capacity' to adapt to or withstand negative environmental changes such as those associated with climate change. Rural development policies should therefore aim to promote economic growth and increase the welfare of rural households without compromising long-term environmental quality and the sustainability of natural resources.