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Do Payments for Environmental Services Affect Forest Cover? A Farm-Level Evaluation from Costa Rica

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  • Rodrigo A. Arriagada,
  • Paul J. Ferraro
  • Erin O. Sills
  • Subhrendu K. Pattanayak
  • Silvia Cordero-Sancho

Abstract

Payments for environmental services (PES) are popular despite little empirical evidence of their effectiveness. We estimate the impact of PES on forest cover in a region known for exemplary implementation of one of the best-known and longest-lived PES programs. Our evaluation design combines sampling that incorporates prematching, data from remote sensing and household surveys, and empirical methods that include partial identification with weak assumptions, difference-in-differences matching estimators, and tests of sensitivity to unobservable heterogeneity. PES in our study site increased participating farm forest cover by about 11% to 17% of the mean area under PES contract over eight years.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 88 (2012)
Issue (Month): 2 ()
Pages: 382-399

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Handle: RePEc:uwp:landec:v:88:y:2012:ii:1:p:382-399

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Web page: http://le.uwpress.org/

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Cited by:
  1. Ina, Porras & Bruce, Alyward & Jeff, Dengel, 2013. "Monitoring payments for watershed services schemes in developing countries," MPRA Paper 47185, University Library of Munich, Germany.
  2. Lewis, Kate & Porras, Ina & Miranda, Miriam & Barton, David & Chacon, Adriana, 2012. "De Rio a Rio+ Lecciones de 20 aƱos de experiencia en servicios ambientales en Costa Rica
    [From Rio to Rio + Lessons from 20 years of experience in environmental services in Costa Rica]
    ," MPRA Paper 43649, University Library of Munich, Germany.
  3. Sophie Clot & Charlotte Stanton, 2014. "Present Bias in Payments for Ecosystem Services: Insights from a Behavioural Experiment in Uganda," Working Papers, LAMETA, Universtiy of Montpellier 14-03, LAMETA, Universtiy of Montpellier, revised Jan 2014.
  4. Pfaff, Alexander & Robalino, Juan & Lima, Eirivelthon & Sandoval, Catalina & Herrera, Luis Diego, 2014. "Governance, Location and Avoided Deforestation from Protected Areas: Greater Restrictions Can Have Lower Impact, Due to Differences in Location," World Development, Elsevier, Elsevier, vol. 55(C), pages 7-20.
  5. Alix-Garcia, Jennifer & Wolff, Hendrik, 2014. "Payment for Ecosystem Services from Forests," IZA Discussion Papers 8179, Institute for the Study of Labor (IZA).
  6. Michael Greenstone & B. Kelsey Jack, 2013. "Envirodevonomics: A Research Agenda for a Young Field," NBER Working Papers 19426, National Bureau of Economic Research, Inc.

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