Advanced Search
MyIDEAS: Login to save this paper or follow this series

Forest Conservation and Slippage: Evidence from Mexico's National Payments for Ecosystem Services Program

Contents:

Author Info

  • Alix-Garcia, Jennifer M.

    (University of Wisconsin-Madison)

  • Shapiro, Elizabeth N.

    (Duke University)

  • Sims, Katharine R. E.

    (Amherst College')

Registered author(s):

    Abstract

    Incentive-based programs to reduce deforestation are expected to play an increasingly important role in global efforts to protect ecosystems and sequester carbon but their environmental effectiveness is not clear. We investigate program effectiveness and slippage in the context of Mexico's national payments for hydrological services program, which pays private and communal landowners to maintain forest cover on enrolled lands. To measure program impacts, we use matched controls drawn from the program applicant pool to establish counterfactual deforestation rates in the absence of payments. We find statistically significant but small to moderate avoided deforestation impacts. To examine slippage of deforestation to nonenrolled lands, we develop a model of household land allocation to agriculture or forest in which some households are credit-constrained. We illustrate that payments for forest conservation may result in slippage due to substitution, resulting in increased deforestation on other parcels belonging to program recipients, or due to output price effects, resulting in increased deforestation within markets where there are high levels of program participation. Our data show evidence consistent with slippage through both mechanisms. This suggests that incentive-based mechanisms can work to prevent deforestation but that avoided deforestation should be accounted for at a regional or national level in international schemes to reduce carbon emissions from deforestation and forest degradation.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.aae.wisc.edu/pubs/sps/pdf/stpap548.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by University of Wisconsin, Agricultural and Applied Economics in its series Staff Paper Series with number 548.

    as in new window
    Length:
    Date of creation: Aug 2010
    Date of revision:
    Handle: RePEc:ecl:wisagr:548

    Contact details of provider:
    Postal: 427 Lorch Street, Madison, WI 53706-1503
    Phone: 608-262-8966
    Fax: 608-262-4376
    Email:
    Web page: http://www.aae.wisc.edu/pubs/sps/
    More information through EDIRC

    Related research

    Keywords:

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Alberto Abadie & Guido W. Imbens, 2002. "Simple and Bias-Corrected Matching Estimators for Average Treatment Effects," NBER Technical Working Papers 0283, National Bureau of Economic Research, Inc.
    2. 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, Elsevier, vol. 33(2), pages 237-253, February.
    3. Smith, Vincent H. & Goodwin, Barry K., 2003. "An Ex Post Evaluation of the Conservation Reserve, Federal Crop Insurance, and Other Government Programs: Program Participation and Soil Erosion," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, Western Agricultural Economics Association, vol. 28(02), August.
    4. Feng, Hongli & Kling, Catherine L. & Kurkalova, Lyubov A. & Secchi, Silvia & Gassman, Philip W., 2005. "Conservation Reserve Program in the Presence of a Working Land Alternative: Implications for Environmental Quality, Program Participation, and Income Transfer, The," Staff General Research Papers 12411, Iowa State University, Department of Economics.
    5. Paul J. Ferraro & R. David Simpson, 2002. "The Cost-Effectiveness of Conservation Payments," Land Economics, University of Wisconsin Press, vol. 78(3), pages 339-353.
    6. Muñoz-Piña, Carlos & Guevara, Alejandro & Torres, Juan Manuel & Braña, Josefina, 2008. "Paying for the hydrological services of Mexico's forests: Analysis, negotiations and results," Ecological Economics, Elsevier, Elsevier, vol. 65(4), pages 725-736, May.
    7. Engel, Stefanie & Pagiola, Stefano & Wunder, Sven, 2008. "Designing payments for environmental services in theory and practice: An overview of the issues," Ecological Economics, Elsevier, Elsevier, vol. 65(4), pages 663-674, May.
    8. Sullivan, Patrick & Hellerstein, Daniel & Hansen, LeRoy T. & Johansson, Robert C. & Koenig, Steven R. & Lubowski, Ruben N. & McBride, William D. & McGranahan, David A. & Roberts, Michael J. & Vogel, S, 2004. "The Conservation Reserve Program: Economic Implications for Rural America," Agricultural Economics Reports, United States Department of Agriculture, Economic Research Service 33987, United States Department of Agriculture, Economic Research Service.
    9. Zwane, Alix Peterson, 2007. "Does poverty constrain deforestation? Econometric evidence from Peru," Journal of Development Economics, Elsevier, Elsevier, vol. 84(1), pages 330-349, September.
    10. N. Wear, David & Murray, Brian C., 2004. "Federal timber restrictions, interregional spillovers, and the impact on US softwood markets," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 307-330, March.
    11. Iain Fraser & Robert Waschik, 2005. "Agricultural Land Retirement and Slippage: Lessons from an Australian Case Study," Land Economics, University of Wisconsin Press, vol. 81(2).
    12. Wu, JunJie & Zilberman, David & Babcock, Bruce A., 2001. "Environmental and Distributional Impacts of Conservation Targeting Strategies," Journal of Environmental Economics and Management, Elsevier, vol. 41(3), pages 333-350, May.
    13. Uchida, Emi & Rozelle, Scott & Xu, Jintao, 2007. "Conservation Payments, Liquidity Constraints and Off-Farm Labor: Impact of the Grain for Green Program on Rural Households in China," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 9698, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Gan, Jianbang & McCarl, Bruce A., 2007. "Measuring transnational leakage of forest conservation," Ecological Economics, Elsevier, Elsevier, vol. 64(2), pages 423-432, December.
    15. Andrew D. Foster & Mark R. Rosenzweig, 2003. "Economic Growth And The Rise Of Forests," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 118(2), pages 601-637, May.
    16. Hongli Feng & Catherine L. Kling & Lyubov A. Kurkalova & Silvia Secchi & Philip W. Gassman, 2005. "The Conservation Reserve Program in the Presence of a Working Land Alternative: Implications for Environmental Quality, Program Participation, and Income Transfer," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 87(5), pages 1231-1238.
    17. Lubowski, Ruben N. & Bucholtz, Shawn & Claassen, Roger & Roberts, Michael J. & Cooper, Joseph C. & Gueorguieva, Anna & Johansson, Robert C., 2006. "Environmental Effects Of Agricultural Land-Use Change: The Role Of Economics And Policy," Economic Research Report, United States Department of Agriculture, Economic Research Service 33591, United States Department of Agriculture, Economic Research Service.
    18. JunJie Wu, 2005. "Slippage Effects of the Conservation Reserve Program: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 87(1), pages 251-254.
    19. Robalino, Juan & Pfaff, Alexander & Sanchez-Azofefia, G. Arturo & Alpizar, Francisco & Leon, Carlos & Rodriguez, Carlos Manuel, 2008. "Deforestation Impacts of Environmental Services Payments: Costa Rica’s PSA Program 2000–2005," Discussion Papers, Resources For the Future dp-08-24-efd, Resources For the Future.
    20. Lichtenberg, Erik, 2004. "Are Green Payments Good for the Environment?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, Northeastern Agricultural and Resource Economics Association, vol. 33(1), April.
    21. Michael J. Roberts & Shawn Bucholtz, 2005. "Slippage in the Conservation Reserve Program or Spurious Correlation? A Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 87(1), pages 244-250.
    22. Peter Berck & William R. Bentley, 1997. "Hotelling's Theory, Enhancement, and the Taking of the Redwood National Park," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 79(2), pages 287-298.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ecl:wisagr:548. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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