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Assessing the potential for synergy in the implementation of Payment for Environmental Services (PES) programs: an empirical analysis in Costa Rica

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  • Zhang, Wei
  • Pagiola, Stefano

Abstract

Payment for environmental services (PES) is a promising mechanism for conservation. It also has the potential to contribute to social objectives such as poverty reduction. To promote synergy in the implementation of PES, however, a number of conditions on spatial, economic, ecological, and institutional feasibilities are essential. This study discusses factors affecting the synergy prospect of PES and provides a simple framework for assessing the potential for synergy in the implementation of PES, focusing on spatial correlation of thematic areas and funding availability for payments. We apply the framework to an empirical analysis of the “water funding” in Costa Rica, a new conservation financing source generated by water tariff revenue and will be channeled through the existing national PES program of Costa Rica (Pago por Servicios Ambientales, PSA). The analysis can help guide the re-allocation of the regular PSA budget in response to the water funding for synergy among conservation goals (watershed and biodiversity) and social development objective.

Suggested Citation

  • Zhang, Wei & Pagiola, Stefano, 2009. "Assessing the potential for synergy in the implementation of Payment for Environmental Services (PES) programs: an empirical analysis in Costa Rica," 2009 Conference, August 16-22, 2009, Beijing, China 51794, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51794
    DOI: 10.22004/ag.econ.51794
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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. FONAFIFO & CONAFOR & Ministry of Environment, 2012. "Lessons Learned for REDD+ from PES and Conservation Incentive Programs," World Bank Publications - Reports 27164, The World Bank Group.
    5. Xiaohui Ding & Chen Zhou & Volker Mauerhofer & Weizhou Zhong & Guoping Li, 2019. "From Environmental Soundness to Sustainable Development: Improving Applicability of Payment for Ecosystem Services Scheme for Diverting Regional Sustainability Transition in Developing Countries," Sustainability, MDPI, vol. 11(2), pages 1-22, January.

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