When are Payments for Environmental Services Beneficial to the Poor?
AbstractThe impact of payment for environmental services (PES) on poverty varies. Generally, PES is good for landowners and may negatively affect consumers if food demand is inelastic. Impacts also depend on the correlation between poverty and environmental amenities. If the richer farmers also provide the best environmental services (ES), then the poor farmers may lose. If there is negative correlation between ES and productivity, then the poorer landowners may gain from ES. The distribution of land matters. If smallholders depend on earnings from work on larger farms, then PES may affect them negatively. Program specifications also matter. Working land programs may have better distributional effects then PES for land diversion.
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Bibliographic InfoPaper provided by Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) in its series Working Papers with number 06-04.
Length: 40 pages
Date of creation: 2006
Date of revision:
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Postal: Agricultural Sector in Economic Development Service FAO Viale delle Terme di Caracalla 00153 Rome Italy
Phone: +39(6) 57051
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Payments for environmental services; poverty; conservation; land use change; market-based mechanisms.;
Find related papers by JEL classification:
- Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
- Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
This paper has been announced in the following NEP Reports:
- NEP-AGR-2006-06-03 (Agricultural Economics)
- NEP-ALL-2006-06-03 (All new papers)
- NEP-ENV-2006-06-03 (Environmental Economics)
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