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A hybrid Coasean and Pigouvian approach to Payment for Ecosystem Services Program in West Lombok: Does it contribute to poverty alleviation?

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  • Diswandi, Diswandi

Abstract

The Payment for Ecosystem Services (PES) concept is mainly based on Coasean economics theory that emphasizes the creation of a voluntary or market-based transaction for ecosystem services. Alternatively, many PES practiced in developing countries are based on Pigouvian economic theory allowing government intervention such as through regulation, tax or subsidy. A hybrid PES approach that compound Coasean and Pigouvian theory was developed in West Lombok Indonesia leading to a new policy paradigm that combines elements of both a voluntary market-based and mandatory policy-based system. This study aims to assess how the hybrid PES program contributes to poverty alleviation. By employing a participatory econometrics approach, this study found that the hybrid PES system does not contribute to poverty alleviation in short-term. It is possible that this PES program contributes to poverty alleviation in long-term.

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  • Diswandi, Diswandi, 2017. "A hybrid Coasean and Pigouvian approach to Payment for Ecosystem Services Program in West Lombok: Does it contribute to poverty alleviation?," Ecosystem Services, Elsevier, vol. 23(C), pages 138-145.
  • Handle: RePEc:eee:ecoser:v:23:y:2017:i:c:p:138-145
    DOI: 10.1016/j.ecoser.2016.12.005
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    Cited by:

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    5. Liu, Zhaoyang & Kontoleon, Andreas, 2018. "Meta-Analysis of Livelihood Impacts of Payments for Environmental Services Programmes in Developing Countries," Ecological Economics, Elsevier, vol. 149(C), pages 48-61.
    6. Lévesque, Ann & Kermagoret, Charlène & Poder, Thomas G. & L'Ecuyer-Sauvageau, Chloé & He, Jie & Sauvé, Sébastien & Dupras, Jérôme, 2021. "Financing on-farm ecosystem services in southern Quebec, Canada: A public call for pesticides reduction," Ecological Economics, Elsevier, vol. 184(C).
    7. Wanggi Jaung & Louis Putzel & Gary Q. Bull & Diswandi Diswandi & Witardi & Markum, 2019. "Temporal Reliability of Willingness to Pay for Payments for Environmental Services: Lessons from Lombok, Indonesia," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(04), pages 1-22, October.

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