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Can the Poor Participate in Payments for Environmental Services?: Lessons from the Silvopastoral Project in Nicaragua

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  • Pagiola, Stefano
  • Rios, Ana R.
  • Arcenas, Agustin

Abstract

This paper uses data from a Payments for Environmental Services (PES) project being implemented in Nicaragua to examine the extent to which poorer households that are eligible to participate are in fact able to do so, an issue over which there has been considerable concern. The study site provides a strong test of the ability of poorer households to participate as it requires participants to make substantial and complex land use changes. 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 3705.

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Date of creation: 12 Feb 2007
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Handle: RePEc:pra:mprapa:3705

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Keywords: Payments for Environmental Services; PES; poverty; participation;

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References

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  1. Barrett, Christopher B. & Lee, David R. & McPeak, John G., 2005. "Institutional Arrangements for Rural Poverty Reduction and Resource Conservation," World Development, Elsevier, vol. 33(2), pages 193-197, February.
  2. 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, vol. 64(2), pages 374-385, December.
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  6. Stefano Pagiola & Paola Agostini & José Gobbi & Cees de Haan & Muhammad Ibrahim, 2004. "Paying for Biodiversity Conservation Services in Agricultural Landscapes," Others 0405005, EconWPA.
  7. Pagiola, Stefano, 2008. "Payments for environmental services in Costa Rica," Ecological Economics, Elsevier, vol. 65(4), pages 712-724, May.
  8. Grieg-Gran, Maryanne & Porras, Ina & Wunder, Sven, 2005. "How can market mechanisms for forest environmental services help the poor? Preliminary lessons from Latin America," World Development, Elsevier, vol. 33(9), pages 1511-1527, September.
  9. 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, vol. 48(1-3), pages 1-12.
  10. Pfaff, Alexander S. P. & Kerr, Suzi & Hughes, R. Flint & Liu, Shuguang & Sanchez-Azofeifa, G. Arturo & Schimel, David & Tosi, Joseph & Watson, Vicente, 2000. "The Kyoto protocol and payments for tropical forest:: An interdisciplinary method for estimating carbon-offset supply and increasing the feasibility of a carbon market under the CDM," Ecological Economics, Elsevier, vol. 35(2), pages 203-221, November.
  11. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
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  13. Wunder, Sven & Albán, Montserrat, 2008. "Decentralized payments for environmental services: The cases of Pimampiro and PROFAFOR in Ecuador," Ecological Economics, Elsevier, vol. 65(4), pages 685-698, May.
  14. 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, vol. 33(2), pages 237-253, February.
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Citations

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Cited by:
  1. 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, vol. 47(3), pages 371-394, November.
  2. Dasgupta, Partha, 2010. "The Place of Nature in Economic Development," Handbook of Development Economics, Elsevier.
  3. Jindal, Rohit & Kerr, John M. & Carter, Sarah, 2012. "Reducing Poverty Through Carbon Forestry? Impacts of the N’hambita Community Carbon Project in Mozambique," World Development, Elsevier, vol. 40(10), pages 2123-2135.
  4. Engel, Stefanie & Pagiola, Stefano & Wunder, Sven, 2008. "Designing payments for environmental services in theory and practice: An overview of the issues," Ecological Economics, Elsevier, vol. 65(4), pages 663-674, May.
  5. Muradian, Roldan & Corbera, Esteve & Pascual, Unai & Kosoy, Nicolás & May, Peter H., 2010. "Reconciling theory and practice: An alternative conceptual framework for understanding payments for environmental services," Ecological Economics, Elsevier, vol. 69(6), pages 1202-1208, April.
  6. World Bank, 2007. "Poverty and Environment : Understanding Linkages at the Household Level," World Bank Other Operational Studies 7744, The World Bank.
  7. World Bank, 2010. "Policy and Investment Priorities to Reduce Environmental Degradation of the lake Nicaragua Watershed (Cocibolca) : Addressing Key Environmental Challenges - Study 2," World Bank Other Operational Studies 13041, The World Bank.
  8. World Bank, 2007. "Poverty and Environment : Understanding Linkages at the Household Level," World Bank Publications, The World Bank, number 6924, October.
  9. World Agroforestry centre, 2010. "Pro-poor compensation and rewards for environmental services in the tropics: saving the commons in Asia, Africa and Latin America?," Working Papers b16863, World Agroforestry Centre, Library Department.
  10. Alix-Garcia, Jennifer & Wolff, Hendrik, 2014. "Payment for Ecosystem Services from Forests," IZA Discussion Papers 8179, Institute for the Study of Labor (IZA).
  11. Bluffstone, Randy & Robinson, Elizabeth & Guthiga, Paul, 2012. "Deforestation and forest degradation are estimated to account for between 12 percent and 20 percent of annual greenhouse gas emissions. These activities, largely in the developing world, released abou," Discussion Papers dp-12-11-efd, Resources For the Future.
  12. Rhona F. Barr & Salvatore Di Falco & Susana Mourato, 2011. "Income diversification, social capital and their potential role in uptake of marine Payments for Environmental Services schemes: a study from a Tanzanian fishing community," Grantham Research Institute on Climate Change and the Environment Working Papers 65, Grantham Research Institute on Climate Change and the Environment.
  13. Rios, Ana R. & Pagiola, Stefano, 2009. "Poor household participation in payments for environmental services in Nicaragua and Colombia," MPRA Paper 13727, University Library of Munich, Germany.

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