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Can the poor participate in payments for environmental services? Lessons from the Silvopastoral Project in Nicaragua

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  • PAGIOLA, STEFANO
  • RIOS, ANA R.
  • ARCENAS, AGUSTIN

Abstract

This paper uses data from a Payments for Environmental Services (PES) project being implemented in Nicaragua to examine the extent to which poorer households that are eligible to participate are in fact able to do so, an issue over which there has been considerable concern. The study site provides a strong test of the ability of poorer households to participate as it requires participants to make substantial and complex land use changes. The results show that poorer households are in fact able to participate—indeed, by some measures they participated to a greater extent than better-off households. Moreover, their participation was not limited to the simpler, least expensive options. Extremely poor households had a somewhat greater difficulty in participating, but even in their case the difference is solely a relative one. Transaction costs may be greater obstacles to the participation of poorer households than household-specific constraints.

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Bibliographic Info

Article provided by Cambridge University Press in its journal Environment and Development Economics.

Volume (Year): 13 (2008)
Issue (Month): 03 (June)
Pages: 299-325

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Handle: RePEc:cup:endeec:v:13:y:2008:i:03:p:299-325_00

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References

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  1. Stefano Pagiola & Paola Agostini & José Gobbi & Cees de Haan & Muhammad Ibrahim, 2004. "Paying for Biodiversity Conservation Services in Agricultural Landscapes," Others 0405005, EconWPA.
  2. Pfaff, Alexander S. P. & Kerr, Suzi & Hughes, R. Flint & Liu, Shuguang & Sanchez-Azofeifa, G. Arturo & Schimel, David & Tosi, Joseph & Watson, Vicente, 2000. "The Kyoto protocol and payments for tropical forest:: An interdisciplinary method for estimating carbon-offset supply and increasing the feasibility of a carbon market under the CDM," Ecological Economics, Elsevier, vol. 35(2), pages 203-221, November.
  3. Kerr, John, 2002. "Watershed Development, Environmental Services, and Poverty Alleviation in India," World Development, Elsevier, vol. 30(8), pages 1387-1400, August.
  4. Schelhas, John W. & Lee, David R. & Thacher, Thomas, 1997. "Farmer Participation In Reforestation Incentive Programs In Costa Rica," Working Papers 127854, Cornell University, Department of Applied Economics and Management.
  5. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
  6. Pagiola, Stefano & Ramirez, Elias & Gobbi, Jose & de Haan, Cees & Ibrahim, Muhammad & Murgueitio, Enrique & Ruiz, Juan Pablo, 2007. "Paying for the environmental services of silvopastoral practices in Nicaragua," Ecological Economics, Elsevier, vol. 64(2), pages 374-385, December.
  7. Wunder, Sven & Albán, Montserrat, 2008. "Decentralized payments for environmental services: The cases of Pimampiro and PROFAFOR in Ecuador," Ecological Economics, Elsevier, vol. 65(4), pages 685-698, May.
  8. Barrett, Christopher B. & Lee, David R. & McPeak, John G., 2005. "Institutional Arrangements for Rural Poverty Reduction and Resource Conservation," World Development, Elsevier, vol. 33(2), pages 193-197, February.
  9. Pagiola, Stefano & Arcenas, Agustin & Platais, Gunars, 2005. "Can Payments for Environmental Services Help Reduce Poverty? An Exploration of the Issues and the Evidence to Date from Latin America," World Development, Elsevier, vol. 33(2), pages 237-253, February.
  10. Pagiola, Stefano, 2006. "Payments for Environmental Services in Costa Rica," MPRA Paper 2010, University Library of Munich, Germany.
  11. Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers 88, World Bank - Living Standards Measurement.
  12. Grieg-Gran, Maryanne & Porras, Ina & Wunder, Sven, 2005. "How can market mechanisms for forest environmental services help the poor? Preliminary lessons from Latin America," World Development, Elsevier, vol. 33(9), pages 1511-1527, September.
  13. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-98, January.
  14. Ephraim Nkonya & Ted Schroeder & David Norman, 1997. "Factors Affecting Adoption Of Improved Maize Seed And Fertiliser In Northern Tanzania," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 1-12.
  15. Heath, John & Binswanger, Hans, 1996. "Natural resource degradation effects of poverty and population growth are largely policy-induced: the case of Colombia," Environment and Development Economics, Cambridge University Press, vol. 1(01), pages 65-84, February.
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Citations

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Cited by:
  1. Rhona F. Barr & Salvatore Di Falco & Susana Mourato, 2011. "Income diversification, social capital and their potential role in uptake of marine Payments for Environmental Services schemes: a study from a Tanzanian fishing community," Grantham Research Institute on Climate Change and the Environment Working Papers 65, Grantham Research Institute on Climate Change and the Environment.
  2. Pagiola, Stefano & Rios, Ana R. & Arcenas, Agustin, 2007. "Poor Household Participation in Payments for Environmental Services: Lessons from the Silvopastoral Project in Quindío, Colombia," MPRA Paper 4794, University Library of Munich, Germany.
  3. World Agroforestry centre, 2010. "Pro-poor compensation and rewards for environmental services in the tropics: saving the commons in Asia, Africa and Latin America?," Working Papers b16863, World Agroforestry Centre, Library Department.
  4. Engel, Stefanie & Pagiola, Stefano & Wunder, Sven, 2008. "Designing payments for environmental services in theory and practice: An overview of the issues," Ecological Economics, Elsevier, vol. 65(4), pages 663-674, May.
  5. World Bank, 2007. "Poverty and Environment : Understanding Linkages at the Household Level," World Bank Publications, The World Bank, number 6924, January.
  6. World Bank, 2010. "Policy and Investment Priorities to Reduce Environmental Degradation of the lake Nicaragua Watershed (Cocibolca) : Addressing Key Environmental Challenges - Study 2," World Bank Other Operational Studies 13041, The World Bank.
  7. Jindal, Rohit & Kerr, John M. & Carter, Sarah, 2012. "Reducing Poverty Through Carbon Forestry? Impacts of the N’hambita Community Carbon Project in Mozambique," World Development, Elsevier, vol. 40(10), pages 2123-2135.
  8. Rios, Ana R. & Pagiola, Stefano, 2009. "Poor household participation in payments for environmental services in Nicaragua and Colombia," MPRA Paper 13727, University Library of Munich, Germany.
  9. Dasgupta, Partha, 2010. "The Place of Nature in Economic Development," Handbook of Development Economics, Elsevier.
  10. World Bank, 2007. "Poverty and Environment : Understanding Linkages at the Household Level," World Bank Other Operational Studies 7744, The World Bank.
  11. Muradian, Roldan & Corbera, Esteve & Pascual, Unai & Kosoy, Nicolás & May, Peter H., 2010. "Reconciling theory and practice: An alternative conceptual framework for understanding payments for environmental services," Ecological Economics, Elsevier, vol. 69(6), pages 1202-1208, April.

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