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Welfare Implications of the Payment for Environmental Services: Case of Uluguru Mountain –Morogoro

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  • Lokina, Razack B.
  • John, Innocensia

Abstract

This study was carried to find out the impact of PES (Payment for Environmental Services) on the welfare of the communities in the Uluguru Mountains. The aim of the study is to assess the main objectives of the PES project which is to conserve the environment (forest) and reduce poverty. The assessment of the project is done by looking on the difference between the treatment group (those who participate in PES) and control group (households who do not participate). The study employed a combination of questionnaire and field observation to collect primary data together with a detailed review of literature. The study utilized Propensity Score Matching (PSM), Descriptive statistics, Perception and Logistic analysis. In all the methods of analysis the results shows that there is a significant difference in the poverty status between treatment and control groups with treatment groups showing low level of poverty. In the regression analysis it is shown that participation into the programme, age of the respondents, the level of dependence on natural resources are found to significantly reduce poverty.

Suggested Citation

  • Lokina, Razack B. & John, Innocensia, 2016. "Welfare Implications of the Payment for Environmental Services: Case of Uluguru Mountain –Morogoro," African Journal of Economic Review, African Journal of Economic Review, vol. 4(1), January.
    • Handle: RePEc:ags:afjecr:264385
    DOI: 10.22004/ag.econ.264385
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    References listed on IDEAS

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    1. Heckman, J.J. & Hotz, V.J., 1988. "Choosing Among Alternative Nonexperimental Methods For Estimating The Impact Of Social Programs: The Case Of Manpower Training," University of Chicago - Economics Research Center 88-12, Chicago - Economics Research Center.
    2. Robinson, Elizabeth J. Z. & Lokina, Razack B., 2012. "Efficiency, enforcement and revenue tradeoffs in participatory forest management: an example from Tanzania," Environment and Development Economics, Cambridge University Press, vol. 17(1), pages 1-20, February.
    3. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    4. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097, Elsevier.
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    Cited by:

    1. Pham, Van Truong & Roongtawanreongsri, Saowalak & Ho, Thong Quoc & Tran, Phuong Hanh Niekdam, 2021. "Can payments for forest environmental services help improve income and attitudes toward forest conservation? Household-level evaluation in the Central Highlands of Vietnam," Forest Policy and Economics, Elsevier, vol. 132(C).
    2. Liu, Zhaoyang & Kontoleon, Andreas, 2018. "Meta-Analysis of Livelihood Impacts of Payments for Environmental Services Programmes in Developing Countries," Ecological Economics, Elsevier, vol. 149(C), pages 48-61.

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