IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v20y2018i4d10.1007_s10668-017-9969-x.html
   My bibliography  Save this article

Designing community-based payment scheme for ecosystem services: a case from Koshi Hills, Nepal

Author

Listed:
  • Laxmi Dutt Bhatta

    (International Centre for Integrated Mountain Development (ICIMOD))

  • Arati Khadgi

    (WWF Nepal)

  • Rajesh Kumar Rai

    (Ton Duc Thang University
    Ton Duc Thang University)

  • Bikram Tamang

    (Green Governance Nepal)

  • Kiran Timalsina

    (Green Governance Nepal)

  • Shahriar Wahid

    (International Centre for Integrated Mountain Development (ICIMOD))

Abstract

The study was carried out to design payment for ecosystem services (PES) scheme to enhance the effectiveness of existing drinking water supply project. This study determined willingness-to-pay of water users using choice experiment method and identify the willingness of watershed households to participate in the scheme by household survey. The results suggest that creating a multi-stakeholder institution at the local level, led by local body, will make the implementation of the PES feasible. This would create trust between ecosystem managers and service consumers, facilitates monitoring system and encourages their participation in watershed management. In the beginning, water users would like to pay less than their willingness-to-pay because it may take time to improve the situation. This suggests that community-based payment for ecosystem services scheme in rural area can be kicked off, only after the external support this is because the amount committed by water users are not sufficient to implement all required activities and ecosystem managers will not make an investment expecting that they will be paid in the future. The study also recommends providing upstream communities in-kind support rather than cash may reduce the transportation cost as well as risk of corruption. This also ensures that the fund is spent on planned activities.

Suggested Citation

  • Laxmi Dutt Bhatta & Arati Khadgi & Rajesh Kumar Rai & Bikram Tamang & Kiran Timalsina & Shahriar Wahid, 2018. "Designing community-based payment scheme for ecosystem services: a case from Koshi Hills, Nepal," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(4), pages 1831-1848, August.
    • Handle: RePEc:spr:endesu:v:20:y:2018:i:4:d:10.1007_s10668-017-9969-x
    DOI: 10.1007/s10668-017-9969-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-017-9969-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-017-9969-x?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. 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.
    2. Rajesh Kumar Rai & Mani Nepal & Priya Shyamsundar & Laxmi Dutt Bhatta, "undated". "Demand for Watershed Services: Understanding Local Preferences through a Choice Experiment in the Koshi Basin of Nepal," Working papers 89, The South Asian Network for Development and Environmental Economics.
    3. Hejnowicz, Adam P. & Raffaelli, David G. & Rudd, Murray A. & White, Piran C.L., 2014. "Evaluating the outcomes of payments for ecosystem services programmes using a capital asset framework," Ecosystem Services, Elsevier, vol. 9(C), pages 83-97.
    4. Kumar, Surender & Managi, Shunsuke, 2009. "Compensation for environmental services and intergovernmental fiscal transfers: The case of India," Ecological Economics, Elsevier, vol. 68(12), pages 3052-3059, October.
    5. Benjamin Sovacool, 2012. "Expert views of climate change adaptation in the Maldives," Climatic Change, Springer, vol. 114(2), pages 295-300, September.
    6. W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
    7. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    8. Grima, Nelson & Singh, Simron J. & Smetschka, Barbara & Ringhofer, Lisa, 2016. "Payment for Ecosystem Services (PES) in Latin America: Analysing the performance of 40 case studies," Ecosystem Services, Elsevier, vol. 17(C), pages 24-32.
    9. Andrew Daly & Stephane Hess & Kenneth Train, 2012. "Assuring finite moments for willingness to pay in random coefficient models," Transportation, Springer, vol. 39(1), pages 19-31, January.
    10. Kerstin K Zander & Stephen T Garnett, 2011. "The Economic Value of Environmental Services on Indigenous-Held Lands in Australia," PLOS ONE, Public Library of Science, vol. 6(8), pages 1-6, August.
    11. Julie Guthman, 1997. "Representing Crisis: The Theory of Himalayan Environmental Degradation and the Project of Development in Post‐Rana Nepal," Development and Change, International Institute of Social Studies, vol. 28(1), pages 45-69, January.
    12. 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.
    13. Bulte, Erwin H. & Lipper, Leslie & Stringer, Randy & Zilberman, David, 2008. "Payments for ecosystem services and poverty reduction: concepts, issues, and empirical perspectives," Environment and Development Economics, Cambridge University Press, vol. 13(3), pages 245-254, June.
    14. Anna, Petrenko, 2016. "Мaркування готової продукції як складова частина інформаційного забезпечення маркетингової діяльності підприємств овочепродуктового підкомплексу," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 2(1), March.
    15. Rawlins, Maurice A. & Westby, Leon, 2013. "Community participation in payment for ecosystem services design and implementation: An example from Trinidad," Ecosystem Services, Elsevier, vol. 6(C), pages 117-121.
    16. 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.
    17. Fauzi, Akhmad & Anna, Zuzy, 2013. "The complexity of the institution of payment for environmental services: A case study of two Indonesian PES schemes," Ecosystem Services, Elsevier, vol. 6(C), pages 54-63.
    18. Rai, Rajesh Kumar & Shyamsundar, Priya & Nepal, Mani & Bhatta, Laxmi Dutt, 2015. "Differences in demand for watershed services: Understanding preferences through a choice experiment in the Koshi Basin of Nepal," Ecological Economics, Elsevier, vol. 119(C), pages 274-283.
    19. Rai, Rajesh Kumar & Scarborough, Helen, 2013. "Economic value of mitigation of plant invaders in a subsistence economy: incorporating labour as a mode of payment," Environment and Development Economics, Cambridge University Press, vol. 18(2), pages 225-244, April.
    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. Mohan Kumar Rai & Basanta Paudel & Yili Zhang & Pashupati Nepal & Narendra Raj Khanal & Linshan Liu & Raju Rai, 2023. "Appraisal of Empirical Studies on Land-Use and Land-Cover Changes and Their Impact on Ecosystem Services in Nepal Himalaya," Sustainability, MDPI, vol. 15(9), pages 1-19, April.
    2. Daryanto, Stefani & Fu, Bojie & Zhao, Wenwu & Wang, Lixin, 2019. "One-hundred years after shrub encroachment: Policy directions towards sustainable rangeland-use," Land Use Policy, Elsevier, vol. 84(C), pages 71-78.
    3. Roshan Sherchan & Rajesh Kumar Rai & Roshani Rai & Arun Dhakal, 2022. "Designing a community-based insurance scheme to reduce human–wildlife conflict," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5112-5130, April.
    4. Shivaraj Thapa & Subina Shrestha & Ram Kumar Adhikari & Suman Bhattarai & Deepa Paudel & Deepak Gautam & Anil Koirala, 2022. "Residents’ willingness-to-pay for watershed conservation program facilitating ecosystem services in Begnas watershed, Nepal," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 7811-7832, June.
    5. Beeju Poudyal & Suraj Upadhaya & Suman Acharya & Bir Bahadur Khanal Chhetri, 2021. "Assessing Socio-Economic Factors Affecting the Implementation of Payment for Ecosystem Services (PES) Mechanism," World, MDPI, vol. 2(1), pages 1-11, February.
    6. Bhatta, Manoj & Garnett, Stephen T. & Zander, Kerstin K., 2022. "Exploring options for a PES-like scheme to conserve red panda habitat and livelihood improvement in western Nepal," Ecosystem Services, Elsevier, vol. 53(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. Rajesh K. Rai & Mani Nepal & Laxmi D. Bhatta & Saudamini Das & Madan S. Khadayat & E. Somanathan & Kedar Baral, 2019. "Ensuring Water Availability to Water Users through Incentive Payment for Ecosystem Services Scheme: A Case Study in a Small Hilly Town of Nepal," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(04), pages 1-26, October.
    2. Jagath C Edirisinge, "undated". "Distributional Impact of Climate Change on Smallholder Agriculture in Sri Lanka," Working papers 107, The South Asian Network for Development and Environmental Economics.
    3. Grima, Nelson & Singh, Simron J. & Smetschka, Barbara, 2018. "Improving payments for ecosystem services (PES) outcomes through the use of Multi-Criteria Evaluation (MCE) and the software OPTamos," Ecosystem Services, Elsevier, vol. 29(PA), pages 47-55.
    4. Blundo-Canto, Genowefa & Bax, Vincent & Quintero, Marcela & Cruz-Garcia, Gisella S. & Groeneveld, Rolf A. & Perez-Marulanda, Lisset, 2018. "The Different Dimensions of Livelihood Impacts of Payments for Environmental Services (PES) Schemes: A Systematic Review," Ecological Economics, Elsevier, vol. 149(C), pages 160-183.
    5. Sattler, Claudia & Matzdorf, Bettina, 2013. "PES in a nutshell: From definitions and origins to PES in practice—Approaches, design process and innovative aspects," Ecosystem Services, Elsevier, vol. 6(C), pages 2-11.
    6. Ola, Oreoluwa & Menapace, Luisa & Benjamin, Emmanuel & Lang, Hannes, 2019. "Determinants of the environmental conservation and poverty alleviation objectives of Payments for Ecosystem Services (PES) programs," Ecosystem Services, Elsevier, vol. 35(C), pages 52-66.
    7. Brownson, Katherine & Guinessey, Elizabeth & Carranza, Marcia & Esquivel, Manrique & Hesselbach, Hilda & Madrid Ramirez, Lucia & Villa, Luis, 2019. "Community-Based Payments for Ecosystem Services (CB-PES): Implications of community involvement for program outcomes," Ecosystem Services, Elsevier, vol. 39(C).
    8. Johnson, Michael Kotutwa & Lien, Aaron M. & Sherman, Natalya Robbins & López-Hoffman, Laura, 2018. "Barriers to PES programs in Indigenous communities: A lesson in land tenure insecurity from the Hopi Indian reservation," Ecosystem Services, Elsevier, vol. 32(PA), pages 62-69.
    9. 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.
    10. 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.
    11. Meginnis, Keila & Hanley, Nick & Mujumbusi, Lazaaro & Lamberton, Poppy H.L., 2020. "Non-monetary numeraires: Varying the payment vehicle in a choice experiment for health interventions in Uganda," Ecological Economics, Elsevier, vol. 170(C).
    12. Nthambi, Mary & Markova-Nenova, Nonka & Wätzold, Frank, 2021. "Quantifying Loss of Benefits from Poor Governance of Climate Change Adaptation Projects: A Discrete Choice Experiment with Farmers in Kenya," Ecological Economics, Elsevier, vol. 179(C).
    13. 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).
    14. Khanal, Uttam & Wilson, Clevo & Lee, Boon & Managi, Shunsuke, 2017. "Influence of payment modes on farmers’ contribution to climate change adaptation: understanding differences using a choice experiment in Nepal," MPRA Paper 107430, University Library of Munich, Germany.
    15. Li, Ruiqian & van den Brink, Margo & Woltjer, Johan, 2017. "Market-based instruments for the governance of coastal and marine ecosystem services: An analysis based on the Chinese case," Ecosystem Services, Elsevier, vol. 23(C), pages 71-81.
    16. Lliso, Bosco & Pascual, Unai & Engel, Stefanie, 2021. "On the role of social equity in payments for ecosystem services in Latin America: A practitioner perspective," Ecological Economics, Elsevier, vol. 182(C).
    17. Hejnowicz, Adam P. & Raffaelli, David G. & Rudd, Murray A. & White, Piran C.L., 2014. "Evaluating the outcomes of payments for ecosystem services programmes using a capital asset framework," Ecosystem Services, Elsevier, vol. 9(C), pages 83-97.
    18. Raes, Leander & Loft, Lasse & Le Coq, Jean François & Van Huylenbroeck, Guido & Van Damme, Patrick, 2016. "Towards market- or command-based governance? The evolution of payments for environmental service schemes in Andean and Mesoamerican countries," Ecosystem Services, Elsevier, vol. 18(C), pages 20-32.
    19. Canessa, Carolin & Venus, Terese E. & Wiesmeier, Miriam & Mennig, Philipp & Sauer, Johannes, 2023. "Incentives, Rewards or Both in Payments for Ecosystem Services: Drawing a Link Between Farmers' Preferences and Biodiversity Levels," Ecological Economics, Elsevier, vol. 213(C).
    20. Soh, Moonwon & Cho, Seong-Hoon & Yu, Edward & Boyer, Christopher & English, Burton, 2018. "Targeting Payments for Ecosystem Services Given Ecological and Economic Objectives," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266502, Southern Agricultural Economics Association.

    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:spr:endesu:v:20:y:2018:i:4:d:10.1007_s10668-017-9969-x. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.