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Poor household participation in payments for environmental services in Nicaragua and Colombia

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  • Rios, Ana R.
  • Pagiola, Stefano

Abstract

We evaluate the extent to which poor households are able to participate in Payments for Environmental Services (PES) scheme using data from a PES scheme implemented at two sites in Latin America. This allows us to compare environmental and livelihood impacts of PES across regions with different agronomic and socio-economic characteristics. In particular, one of our sites is composed almost entirely of poor or extremely poor households, while the other has households ranging from extremely poor to very well off. The results show that poorer households are in fact able to participate—indeed, by some measures they participated to a greater extent than better-off households. Moreover, their participation was not limited to the simpler, least expensive options. Extremely poor households had a somewhat greater difficulty in participating, but even in their case the difference is solely a relative one. Transaction costs may be greater obstacles to the participation of poorer households than household-specific constraints.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13727.

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Date of creation: 12 Feb 2009
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Handle: RePEc:pra:mprapa:13727

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Keywords: Payments for environmental services; PES; poverty; silvopastoral;

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References

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  1. Pagiola, Stefano, 2008. "Payments for environmental services in Costa Rica," Ecological Economics, Elsevier, Elsevier, vol. 65(4), pages 712-724, May.
  2. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, Econometric Society, vol. 48(4), pages 817-38, May.
  3. Wunder, Sven, 2008. "Payments for environmental services and the poor: concepts and preliminary evidence," Environment and Development Economics, Cambridge University Press, Cambridge University Press, vol. 13(03), pages 279-297, June.
  4. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 33(2), pages 255-98, January.
  5. Stefano Pagiola & Ana Rios & Agustin Arcenas, 2010. "Poor Household Participation in Payments for Environmental Services: Lessons from the Silvopastoral Project in Quindío, Colombia," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 47(3), pages 371-394, November.
  6. Ephraim Nkonya & Ted Schroeder & David Norman, 1997. "Factors Affecting Adoption Of Improved Maize Seed And Fertiliser In Northern Tanzania," Journal of Agricultural Economics, Wiley Blackwell, Wiley Blackwell, vol. 48(1-3), pages 1-12.
  7. Pagiola, Stefano & Rios, Ana R. & Arcenas, Agustin, 2007. "Can the Poor Participate in Payments for Environmental Services?: Lessons from the Silvopastoral Project in Nicaragua," MPRA Paper 3705, University Library of Munich, Germany.
  8. Schelhas, John W. & Lee, David R. & Thacher, Thomas, 1997. "Farmer Participation In Reforestation Incentive Programs In Costa Rica," Working Papers, Cornell University, Department of Applied Economics and Management 127854, Cornell University, Department of Applied Economics and Management.
  9. 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.
  10. Pagiola, Stefano & Ramirez, Elias & Gobbi, Jose & de Haan, Cees & Ibrahim, Muhammad & Murgueitio, Enrique & Ruiz, Juan Pablo, 2007. "Paying for the environmental services of silvopastoral practices in Nicaragua," Ecological Economics, Elsevier, Elsevier, vol. 64(2), pages 374-385, December.
  11. 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.
  12. Stefano Pagiola & Paola Agostini & José Gobbi & Cees de Haan & Muhammad Ibrahim, 2004. "Paying for Biodiversity Conservation Services in Agricultural Landscapes," Others, EconWPA 0405005, EconWPA.
  13. Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers, World Bank - Living Standards Measurement 88, World Bank - Living Standards Measurement.
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Cited by:
  1. Rodríguez, Luis C. & Pascual, Unai & Muradian, Roldan & Pazmino, Nathalie & Whitten, Stuart, 2011. "Towards a unified scheme for environmental and social protection: Learning from PES and CCT experiences in developing countries," Ecological Economics, Elsevier, Elsevier, vol. 70(11), pages 2163-2174, September.

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