Why and how much are firms willing to invest in ecosystem services from tropical forests? A comparison of international and Costa Rican firms
In recent years, schemes for payment for ecosystem services PES have emerged in tropical countries. Besides public demand, the private demand offers the opportunity to develop PES. The goal of this paper is to investigate the potential demand by firms for four ecosystem services from tropical forests: biodiversity conservation, carbon sequestration, scenic beauty, and watershed protection. Those are the four granted in the forest legislation and rewarded for in the PES scheme in Costa Rica. To explain stated willingness to invest WTI, we assess influential factors: expectations with respect to financial and non-financial benefits of investing in ecosystem services; experience with forest ecosystem services; firm attributes, like origin, sector membership, and size; and finally, perceived behavioral control. We sent a questionnaire to over 900 international and Costa Rican firms from different sectors. The low response rate of the survey of overall 6% can be explained by - in a business context - rather new topic of ecosystem services from tropical forests. The analysis showed that a firm's willingness to invest (WTI) depends on the origin of the firm. International firms are interested in buying certificates mainly for carbon sequestration; Costa Rican firms, for all four ecosystem services in the following order: watershed protection, biodiversity conservation, carbon sequestration, and scenic beauty. Indirect and non-financial benefits are surprisingly important and can impede the development of ecosystem service markets. At the same time, the activities of intrinsically motivated green entrepreneurs in a financially oriented firm setting might be a prerequisite within a firm context for bringing such innovative topics as ecosystem services from tropical forests to the table.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Batabyal, Amitrajeet A. & Kahn, James R. & O'Neill, Robert V., 2003. "On the scarcity value of ecosystem services," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 334-352, September.
- 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, vol. 65(4), pages 725-736, May.
- Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
- Pagiola, Stefano, 2006.
"Payments for Environmental Services in Costa Rica,"
2010, University Library of Munich, Germany.
- Carson, Richard T., 1998. "Valuation of tropical rainforests: philosophical and practical issues in the use of contingent valuation," Ecological Economics, Elsevier, vol. 24(1), pages 15-29, January.
- Engel, Stefanie & Palmer, Charles, 2008. "Payments for environmental services as an alternative to logging under weak property rights: The case of Indonesia," Ecological Economics, Elsevier, vol. 65(4), pages 799-809, May.
- Sell, Joachim & Koellner, Thomas & Weber, Olaf & Pedroni, Lucio & Scholz, Roland W., 2006. "Decision criteria of European and Latin American market actors for tropical forestry projects providing environmental services," Ecological Economics, Elsevier, vol. 58(1), pages 17-36, June.
- Luke Brander & Raymond Florax & Jan Vermaat, 2006. "The Empirics of Wetland Valuation: A Comprehensive Summary and a Meta-Analysis of the Literature," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 33(2), pages 223-250, 02.
- Sell, Joachim & Koellner, Thomas & Weber, Olaf & Proctor, Wendy & Pedroni, Lucio & Scholz, Roland W., 2007. "Ecosystem services from tropical forestry projects - The choice of international market actors," Forest Policy and Economics, Elsevier, vol. 9(5), pages 496-515, January.
- Adams, Cristina & Seroa da Motta, Ronaldo & Ortiz, Ramón Arigoni & Reid, John & Ebersbach Aznar, Cristina & de Almeida Sinisgalli, Paulo Antonio, 2008. "The use of contingent valuation for evaluating protected areas in the developing world: Economic valuation of Morro do Diabo State Park, Atlantic Rainforest, São Paulo State (Brazil)," Ecological Economics, Elsevier, vol. 66(2-3), pages 359-370, June.
- Wunder, Sven & Engel, Stefanie & Pagiola, Stefano, 2008. "Taking stock: A comparative analysis of payments for environmental services programs in developed and developing countries," Ecological Economics, Elsevier, vol. 65(4), pages 834-852, May.
- Loomis, John & Kent, Paula & Strange, Liz & Fausch, Kurt & Covich, Alan, 2000. "Measuring the total economic value of restoring ecosystem services in an impaired river basin: results from a contingent valuation survey," Ecological Economics, Elsevier, vol. 33(1), pages 103-117, April.
- Sagoff, M., 1998. "Aggregation and deliberation in valuing environmental public goods:: A look beyond contingent pricing," Ecological Economics, Elsevier, vol. 24(2-3), pages 213-230, February.
When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:69:y:2010:i:11:p:2127-2139. 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: (Zhang, Lei)
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.