Designing a payments for ecosystem services (PES) program to reduce deforestation in Tanzania: An assessment of payment approaches
Payments for ecosystem services (PES) programs aim to improve environmental outcomes by providing direct incentives to land managers for the provision of ecosystem services. Participation in PES programs is voluntary, so effective program design requires careful consideration of farmers' preferences. This study quantifies such preferences using a choice experiment. The study site is the East Usambara Mountains, Tanzania, an internationally recognized ‘biodiversity hotspot.’ We assess preferences for four payment approaches: constant and variable annual cash payments to individual farmers, a constant annual cash payment to a village fund on behalf of farmers, and an upfront manure fertilizer payment. We find that the manure fertilizer payment was statistically significant in motivating farmer participation while the group payment was non-significant. In addition, the relationship between the likelihood of participation and the stringency of conditionality is surprisingly non-linear. In a test of external validity, average willingness to accept (WTA) values are found to be similar to the average opportunity cost of maintaining land uses consistent with conservation objectives.
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.:
- Nunes, Paulo A. L. D. & Schokkaert, Erik, 2003. "Identifying the warm glow effect in contingent valuation," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 231-245, March.
- Carlsson, Fredrik & Frykblom, Peter & Lagerkvist, Carl-Johan, 2004.
"Using Cheap-Talk as a Test of Validity in Choice Experiments,"
Working Papers in Economics
128, University of Gothenburg, Department of Economics.
- Carlsson, Fredrik & Frykblom, Peter & Johan Lagerkvist, Carl, 2005. "Using cheap talk as a test of validity in choice experiments," Economics Letters, Elsevier, vol. 89(2), pages 147-152, November.
- Broch, Stine Wamberg & Strange, Niels & Jacobsen, Jette B. & Wilson, Kerrie A., 2013. "Farmers' willingness to provide ecosystem services and effects of their spatial distribution," Ecological Economics, Elsevier, vol. 92(C), pages 78-86.
- repec:ebl:ecbull:v:3:y:2004:i:6:p:1-13 is not listed on IDEAS
- 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.
- Mickael Bech & Dorte Gyrd-Hansen, 2005. "Effects coding in discrete choice experiments," Health Economics, John Wiley & Sons, Ltd., vol. 14(10), pages 1079-1083.
- Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
- Lusk, Jayson L. & Norwood, F. Bailey, 2009. "Bridging the gap between laboratory experiments and naturally occurring markets: An inferred valuation method," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 236-250, September.
- Riccardo Scarpa & Mara Thiene, 2005. "Destination Choice Models for Rock Climbing in the Northeastern Alps: A Latent-Class Approach Based on Intensity of Preferences," Land Economics, University of Wisconsin Press, vol. 81(3).
- Kerr, John & Vardhan, Mamta & Jindal, Rohit, 2012. "Prosocial behavior and incentives: Evidence from field experiments in rural Mexico and Tanzania," Ecological Economics, Elsevier, vol. 73(C), pages 220-227.
- Arifin, Bustanul & Swallow, Brent M. & Suyanto, S. & Coe, Richard D., 2009.
"A conjoint analysis of farmer preferences for community forestry contracts in the Sumber Jaya Watershed, Indonesia,"
Elsevier, vol. 68(7), pages 2040-2050, May.
- Arifin, B. & Swallow, B. & Suyanto & Coe, R., 2008. "A conjoint analysis of farmer preferences for community forestry contracts in the Sumber Jaya watershed, Indonesia," Working Papers b15527, World Agroforestry Centre, Library Department.
- Stine Broch & Suzanne Vedel, 2012. "Using Choice Experiments to Investigate the Policy Relevance of Heterogeneity in Farmer Agri-Environmental Contract Preferences," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 51(4), pages 561-581, April.
- Southgate, Douglas & Haab, Timothy & Lundine, John & Rodríguez, Fabián, 2010. "Payments for environmental services and rural livelihood strategies in Ecuador and Guatemala," Environment and Development Economics, Cambridge University Press, vol. 15(01), pages 21-37, February.
- Joseph Little & Robert Berrens, 2004. "Explaining Disparities between Actual and Hypothetical Stated Values: Further Investigation Using Meta-Analysis," Economics Bulletin, AccessEcon, vol. 3(6), pages 1-13.
- W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
- Cooper, Joseph C. & Osborn, Tim, 1998.
"The effect of rental rates on the extension of Conservation Reserve Program contracts,"
24781, University Library of Munich, Germany.
- Joseph C. Cooper & C. Tim Osborn, 1998. "The Effect of Rental Rates on the Extension of Conservation Reserve Program Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 184-194.
- Kemkes, Robin J. & Farley, Joshua & Koliba, Christopher J., 2010. "Determining when payments are an effective policy approach to ecosystem service provision," Ecological Economics, Elsevier, vol. 69(11), pages 2069-2074, September.
- Christensen, Tove & Pedersen, Anders Branth & Nielsen, Helle Oersted & Mørkbak, Morten Raun & Hasler, Berit & Denver, Sigrid, 2011. "Determinants of farmers' willingness to participate in subsidy schemes for pesticide-free buffer zones--A choice experiment study," Ecological Economics, Elsevier, vol. 70(8), pages 1558-1564, June.
- Dale Whittington & Stefano Pagiola, 2012.
"Using Contingent Valuation in the Design of Payments for Environmental Services Mechanisms: A Review and Assessment,"
World Bank Research Observer,
World Bank Group, vol. 27(2), pages 261-287, August.
- Whittington, Dale & Pagiola, Stefano, 2011. "Using contingent valuation in the design of payments for environmental services mechanisms: a review and assessment," MPRA Paper 32730, University Library of Munich, Germany.
- Laura O. Taylor & Ronald G. Cummings, 1999. "Unbiased Value Estimates for Environmental Goods: A Cheap Talk Design for the Contingent Valuation Method," American Economic Review, American Economic Association, vol. 89(3), pages 649-665, June.
- Cooper, Joseph C., 2001.
"A Joint Framework for Analysis of Agri-Environmental Payment Programs,"
2001 Annual meeting, August 5-8, Chicago, IL
20493, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Joseph C. Cooper, 2003. "A Joint Framework for Analysis of Agri-Environmental Payment Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 976-987.
- Klosowski, R. & Stevens, T. & Kittredge, D. & Dennis, D., 2001. "Economic incentives for coordinated management of forest land: a case study of southern New England," Forest Policy and Economics, Elsevier, vol. 2(1), pages 29-38, April.
- Geraldine Ducos & Pierre Dupraz & Francois Bonnieux, 2009. "Agri-environment contract adoption under fixed and variable compliance costs," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(5), pages 669-687.
- Maria Espinosa-Goded & Jes�s Barreiro-Hurlé & Eric Ruto, 2010. "What Do Farmers Want From Agri-Environmental Scheme Design? A Choice Experiment Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 259-273.
- 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.
- Hanley, Nick & Mourato, Susana & Wright, Robert E, 2001. " Choice Modelling Approaches: A Superior Alternative for Environmental Valuation?," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 435-62, July.
- Eric Ruto & Guy Garrod, 2009. "Investigating farmers' preferences for the design of agri-environment schemes: a choice experiment approach," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(5), pages 631-647.
When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:95:y:2013:i:c:p:20-30. 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.