IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v93y2017icp427-446.html
   My bibliography  Save this article

The Impact of Payments for Environmental Services on Communal Lands: An Analysis of the Factors Driving Household Land-Use Behavior in Ecuador

Author

Listed:
  • Hayes, Tanya
  • Murtinho, Felipe
  • Wolff, Hendrik

Abstract

This article examines how Payments for Environmental Services (PES) influence household land-use behavior in the context of common-property lands. PES programs have been increasingly applied to communities who collectively manage their lands. While a number of authors have expressed concerns about the ability of said programs to generate additional environmental benefits and the potential for PES to counter community resource management arrangements, few empirical studies have explicitly examined PES in the context of communal resource management. Here, we take advantage of the gradual rollout of an Ecuadorian PES program to compare land-use behavior on collective lands in participant communities to households in communities that are waiting to participate. The goals of the analysis are to (a) identify if the PES program has produced changes in land-use, (b) assess the degree to which household characteristics and communal governance conditions drive land-use behavior, and (c) explore the interplay between PES and communal resource management institutions. Data were gathered from a cross-sectional survey of 399 households located in 11 communities. We use difference-in-differences to estimate the average effect of PES program participation on household behavior. Logit models, coupled with qualitative analysis, unpack how communal governance characteristics influence land-use behavior and the interplay between communal governance conditions and PES. We find that PES reduced the number of households grazing livestock on collective lands by 12%, however, household and communal governance factors are also instrumental in determining land-use decisions. Our results provide empirical insights into the debate over PES in collective resource management and illustrate how PES and communal resource management institutions can build upon each other to attain desired household conservation behavior.

Suggested Citation

  • Hayes, Tanya & Murtinho, Felipe & Wolff, Hendrik, 2017. "The Impact of Payments for Environmental Services on Communal Lands: An Analysis of the Factors Driving Household Land-Use Behavior in Ecuador," World Development, Elsevier, vol. 93(C), pages 427-446.
    • Handle: RePEc:eee:wdevel:v:93:y:2017:i:c:p:427-446
    DOI: 10.1016/j.worlddev.2017.01.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X17300050
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2017.01.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Angus Deaton, 2010. "Instruments, Randomization, and Learning about Development," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 424-455, June.
    2. 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.
    3. 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.
    4. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
    5. Rode, Julian & Gómez-Baggethun, Erik & Krause, Torsten, 2015. "Motivation crowding by economic incentives in conservation policy: A review of the empirical evidence," Ecological Economics, Elsevier, vol. 117(C), pages 270-282.
    6. Xavier Basurto & Elinor Ostrom, 2009. "Beyond the tragedy of the Commons," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(1), pages 35-60.
    7. Daniela A. Miteva & Subhrendu K. Pattanayak & Paul J. Ferraro, 2012. "Evaluation of biodiversity policy instruments: what works and what doesn’t?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 28(1), pages 69-92, Spring.
    8. Jennifer M. Alix-Garcia & Elizabeth N. Shapiro & Katharine R. E. Sims, 2012. "Forest Conservation and Slippage: Evidence from Mexico’s National Payments for Ecosystem Services Program," Land Economics, University of Wisconsin Press, vol. 88(4), pages 613-638.
    9. Vatn, Arild, 2010. "An institutional analysis of payments for environmental services," Ecological Economics, Elsevier, vol. 69(6), pages 1245-1252, April.
    10. Subhrendu K. Pattanayak & Sven Wunder & Paul J. Ferraro, 2010. "Show Me the Money: Do Payments Supply Environmental Services in Developing Countries?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(2), pages 254-274, Summer.
    11. Narloch, Ulf & Pascual, Unai & Drucker, Adam G., 2012. "Collective Action Dynamics under External Rewards: Experimental Insights from Andean Farming Communities," World Development, Elsevier, vol. 40(10), pages 2096-2107.
    12. Hayes, Tanya & Murtinho, Felipe & Wolff, Hendrik, 2015. "An institutional analysis of Payment for Environmental Services on collectively managed lands in Ecuador," Ecological Economics, Elsevier, vol. 118(C), pages 81-89.
    13. Cardenas, Juan Camilo & Stranlund, John & Willis, Cleve, 2000. "Local Environmental Control and Institutional Crowding-Out," World Development, Elsevier, vol. 28(10), pages 1719-1733, October.
    14. Coleman, Eric A. & Steed, Brian C., 2009. "Monitoring and sanctioning in the commons: An application to forestry," Ecological Economics, Elsevier, vol. 68(7), pages 2106-2113, May.
    15. Agrawal, Arun & Chhatre, Ashwini & Gerber, Elisabeth R., 2015. "Motivational Crowding in Sustainable Development Interventions," American Political Science Review, Cambridge University Press, vol. 109(3), pages 470-487, August.
    16. Carina Schmitt, 2010. "Sources of Civic Engagement in Latin America: Empirical Evidence from Rural Ecuadorian Communities," Journal of Development Studies, Taylor & Francis Journals, vol. 46(8), pages 1442-1458.
    17. Clements, Tom & John, Ashish & Nielsen, Karen & An, Dara & Tan, Setha & Milner-Gulland, E.J., 2010. "Payments for biodiversity conservation in the context of weak institutions: Comparison of three programs from Cambodia," Ecological Economics, Elsevier, vol. 69(6), pages 1283-1291, April.
    18. Vollan, Bjørn, 2008. "Socio-ecological explanations for crowding-out effects from economic field experiments in southern Africa," Ecological Economics, Elsevier, vol. 67(4), pages 560-573, November.
    19. 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.
    20. Andersson, Krister P. & Gibson, Clark C. & Lehoucq, Fabrice, 2006. "Municipal politics and forest governance: Comparative analysis of decentralization in Bolivia and Guatemala," World Development, Elsevier, vol. 34(3), pages 576-595, March.
    21. García-Amado, Luis Rico & Pérez, Manuel Ruiz & Escutia, Felipe Reyes & García, Sara Barrasa & Mejía, Elsa Contreras, 2011. "Efficiency of Payments for Environmental Services: Equity and additionality in a case study from a Biosphere Reserve in Chiapas, Mexico," Ecological Economics, Elsevier, vol. 70(12), pages 2361-2368.
    22. Rodrigo A. Arriagada, & Paul J. Ferraro & Erin O. Sills & Subhrendu K. Pattanayak & Silvia Cordero-Sancho, 2012. "Do Payments for Environmental Services Affect Forest Cover? A Farm-Level Evaluation from Costa Rica," Land Economics, University of Wisconsin Press, vol. 88(2), pages 382-399.
    23. Alix-Garcia, Jennifer & Wolff, Hendrik, 2014. "Payment for Ecosystem Services from Forests," IZA Discussion Papers 8179, Institute of Labor Economics (IZA).
    24. Jennifer Alix-Garcia & Hendrik Wolff, 2014. "Payment for Ecosystem Services from Forests," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 361-380, October.
    25. Gibson, Clark C. & Williams, John T. & Ostrom, Elinor, 2005. "Local Enforcement and Better Forests," World Development, Elsevier, vol. 33(2), pages 273-284, February.
    26. Corbera, Esteve & Soberanis, Carmen González & Brown, Katrina, 2009. "Institutional dimensions of Payments for Ecosystem Services: An analysis of Mexico's carbon forestry programme," Ecological Economics, Elsevier, vol. 68(3), pages 743-761, January.
    27. Pascual, Unai & Muradian, Roldan & Rodríguez, Luis C. & Duraiappah, Anantha, 2010. "Exploring the links between equity and efficiency in payments for environmental services: A conceptual approach," Ecological Economics, Elsevier, vol. 69(6), pages 1237-1244, April.
    28. Wunder, Sven & Engel, Stefanie & Pagiola, Stefano, 2008. "Taking stock: A comparative analysis of payments for environmental services programs in developed and developing countries," Ecological Economics, Elsevier, vol. 65(4), pages 834-852, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Long, Kaisheng & Omrani, Hichem & Pijanowski, Bryan C., 2020. "Impact of local payments for ecosystem services on land use in a developed area of China: A qualitative analysis based on an integrated conceptual framework," Land Use Policy, Elsevier, vol. 96(C).
    2. Kaiser, Josef & Krueger, Tobias & Haase, Dagmar, 2023. "Global patterns of collective payments for ecosystem services and their degrees of commodification," Ecological Economics, Elsevier, vol. 209(C).
    3. Kaczan, David & Pfaff, Alexander & Rodriguez, Luz & Shapiro-Garza, Elizabeth, 2017. "Increasing the impact of collective incentives in payments for ecosystem services," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 48-67.
    4. Cisneros, Elías & Börner, Jan & Pagiola, Stefano & Wunder, Sven, 2022. "Impacts of conservation incentives in protected areas: The case of Bolsa Floresta, Brazil," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    5. Rodriguez, Luz A. & Pfaff, Alexander & Velez, Maria Alejandra, 2019. "Graduated stringency within collective incentives for group environmental compliance: Building coordination in field-lab experiments with artisanal gold miners in Colombia," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    6. Wang, Ying & Bilsborrow, Richard E. & Zhang, Qi & Li, Jiangfeng & Song, Conghe, 2019. "Effects of payment for ecosystem services and agricultural subsidy programs on rural household land use decisions in China: Synergy or trade-off?," Land Use Policy, Elsevier, vol. 81(C), pages 785-801.
    7. Blackmore, Ivy & Iannotti, Lora & Rivera, Claudia & Waters, William F. & Lesorogol, Carolyn, 2021. "Land degradation and the link to increased livelihood vulnerabilities among indigenous populations in the Andes of Ecuador," Land Use Policy, Elsevier, vol. 107(C).
    8. Hongbin Liu & Jie Lyu, 2021. "Drive Mechanisms of Soil Quality Changes in Peri-Urban Areas," Land, MDPI, vol. 10(2), pages 1-21, February.
    9. Jones, Kelly W. & Muñoz Brenes, Carlos L. & Shinbrot, Xoco A. & López-Báez, Walter & Rivera-Castañeda, Andrómeda, 2018. "The influence of cash and technical assistance on household-level outcomes in payments for hydrological services programs in Chiapas, Mexico," Ecosystem Services, Elsevier, vol. 31(PA), pages 208-218.
    10. Ojeda Luna, Tatiana & Zhunusova, Eliza & Günter, Sven & Dieter, Matthias, 2020. "Measuring forest and agricultural income in the Ecuadorian lowland rainforest frontiers: Do deforestation and conservation strategies matter?," Forest Policy and Economics, Elsevier, vol. 111(C).
    11. van Soest,Daan & Adjognon,Guigonan Serge & van der Heijden,Eline, 2021. "Incentivizing Conservation of de facto Community-Owned Forests," Policy Research Working Paper Series 9693, The World Bank.
    12. Rodriguez, Luz A. & Velez, María Alejandra & Pfaff, Alexander, 2021. "Leaders’ distributional & efficiency effects in collective responses to policy: Lab-in-field experiments with small-scale gold miners in Colombia," World Development, Elsevier, vol. 147(C).
    13. Thang Quyet Nguyen & Nguyen Tan Huynh & Wen-Kai K. Hsu, 2021. "Estimate the Impact of Payments for Environmental Services on Local Livelihoods and Environment: An Application of Propensity Scores," SAGE Open, , vol. 11(3), pages 21582440211, August.
    14. Nguyen, Van Thi Hai & McElwee, Pamela & Le, Hue Thi Van & Nghiem, Tuyen & Vu, Huong Thi Dieu, 2022. "The challenges of collective PES: Insights from three community-based models in Vietnam," Ecosystem Services, Elsevier, vol. 56(C).
    15. Bauchet, Jonathan & Asquith, Nigel & Ma, Zhao & Radel, Claudia & Godoy, Ricardo & Zanotti, Laura & Steele, Diana & Gramig, Benjamin M. & Chong, Andrea Estrella, 2020. "The practice of Payments for Ecosystem Services (PES) in the Tropical Andes: Evidence from program administrators," Ecosystem Services, Elsevier, vol. 45(C).
    16. Yonariza, & Andini, Bevi Astika & Mahdi, & Maynard, Simone, 2019. "Addressing knowledge gaps between stakeholders in payments for watershed services: Case of Koto Panjang hydropower plant catchment area, Sumatra, Indonesia," Ecosystem Services, Elsevier, vol. 39(C).
    17. Chai, Ying & Zhang, Haoran & Luo, Yong & Wang, Yi & Zeng, Yunmin, 2021. "Payments for ecosystem services programs, institutional bricolage, and common pool resource management: Evidence from village collective-managed irrigation systems in China," Ecological Economics, Elsevier, vol. 182(C).
    18. Strand, Jon, 2018. "Forest Preservation Under REDD+ Schemes With Incentives Distortions," Ecological Economics, Elsevier, vol. 154(C), pages 343-348.
    19. Charnley, Susan, 2023. "Livelihood investments as incentives for community forestry in Africa," World Development, Elsevier, vol. 168(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hayes, Tanya & Murtinho, Felipe & Wolff, Hendrik, 2015. "An institutional analysis of Payment for Environmental Services on collectively managed lands in Ecuador," Ecological Economics, Elsevier, vol. 118(C), pages 81-89.
    2. Börner, Jan & Baylis, Kathy & Corbera, Esteve & Ezzine-de-Blas, Driss & Honey-Rosés, Jordi & Persson, U. Martin & Wunder, Sven, 2017. "The Effectiveness of Payments for Environmental Services," World Development, Elsevier, vol. 96(C), pages 359-374.
    3. Ito, Junichi & Feuer, Hart N. & Kitano, Shinichi & Komiyama, Midori, 2018. "A Policy Evaluation of the Direct Payment Scheme for Collective Stewardship of Common Property Resources in Japan," Ecological Economics, Elsevier, vol. 152(C), pages 141-151.
    4. Ma, Zhao & Bauchet, Jonathan & Steele, Diana & Godoy, Ricardo & Radel, Claudia & Zanotti, Laura, 2017. "Comparison of Direct Transfers for Human Capital Development and Environmental Conservation," World Development, Elsevier, vol. 99(C), pages 498-517.
    5. Jones, Kelly W. & Muñoz Brenes, Carlos L. & Shinbrot, Xoco A. & López-Báez, Walter & Rivera-Castañeda, Andrómeda, 2018. "The influence of cash and technical assistance on household-level outcomes in payments for hydrological services programs in Chiapas, Mexico," Ecosystem Services, Elsevier, vol. 31(PA), pages 208-218.
    6. Schomers, Sarah & Matzdorf, Bettina, 2013. "Payments for ecosystem services: A review and comparison of developing and industrialized countries," Ecosystem Services, Elsevier, vol. 6(C), pages 16-30.
    7. Bottazzi, Patrick & Wiik, Emma & Crespo, David & Jones, Julia P.G., 2018. "Payment for Environmental “Self-Service”: Exploring the Links Between Farmers' Motivation and Additionality in a Conservation Incentive Programme in the Bolivian Andes," Ecological Economics, Elsevier, vol. 150(C), pages 11-23.
    8. Rosa da Conceição, Hugo & Börner, Jan & Wunder, Sven, 2015. "Why were upscaled incentive programs for forest conservation adopted? Comparing policy choices in Brazil, Ecuador, and Peru," Ecosystem Services, Elsevier, vol. 16(C), pages 243-252.
    9. Jespersen, Kristjan & Gallemore, Caleb, 2018. "The Institutional Work of Payments for Ecosystem Services: Why the Mundane Should Matter," Ecological Economics, Elsevier, vol. 146(C), pages 507-519.
    10. Cranford, Matthew & Mourato, Susana, 2014. "Credit-Based Payments for Ecosystem Services: Evidence from a Choice Experiment in Ecuador," World Development, Elsevier, vol. 64(C), pages 503-520.
    11. Grillos, Tara & Bottazzi, Patrick & Crespo, David & Asquith, Nigel & Jones, Julia P.G., 2019. "In-kind conservation payments crowd in environmental values and increase support for government intervention: A randomized trial in Bolivia," Ecological Economics, Elsevier, vol. 166(C), pages 1-1.
    12. Campanhão, Ligia Maria Barrios & Ranieri, Victor Eduardo Lima, 2019. "Guideline framework for effective targeting of payments for watershed services," Forest Policy and Economics, Elsevier, vol. 104(C), pages 93-109.
    13. 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.
    14. Rodríguez, Luis C. & Pascual, Unai & Muradian, Roldan & Pazmino, Nathalie & Whitten, Stuart, 2011. "Towards a unified scheme for environmental and social protection: Learning from PES and CCT experiences in developing countries," Ecological Economics, Elsevier, vol. 70(11), pages 2163-2174, September.
    15. Moros, Lina & Vélez, María Alejandra & Corbera, Esteve, 2019. "Payments for Ecosystem Services and Motivational Crowding in Colombia's Amazon Piedmont," Ecological Economics, Elsevier, vol. 156(C), pages 468-488.
    16. Midler, Estelle & Pascual, Unai & Drucker, Adam G. & Narloch, Ulf & Soto, José Luis, 2015. "Unraveling the effects of payments for ecosystem services on motivations for collective action," Ecological Economics, Elsevier, vol. 120(C), pages 394-405.
    17. Kaczan, David & Pfaff, Alexander & Rodriguez, Luz & Shapiro-Garza, Elizabeth, 2017. "Increasing the impact of collective incentives in payments for ecosystem services," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 48-67.
    18. Mohebalian, Phillip M. & Aguilar, Francisco X., 2016. "Additionality and design of forest conservation programs: Insights from Ecuador's Socio Bosque Program," Forest Policy and Economics, Elsevier, vol. 71(C), pages 103-114.
    19. Chervier, Colas & Costedoat, Sébastien, 2017. "Heterogeneous Impact of a Collective Payment for Environmental Services Scheme on Reducing Deforestation in Cambodia," World Development, Elsevier, vol. 98(C), pages 148-159.
    20. Sims, Katharine R.E. & Alix-Garcia, Jennifer M., 2017. "Parks versus PES: Evaluating direct and incentive-based land conservation in Mexico," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 8-28.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:93:y:2017:i:c:p:427-446. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.