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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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    9. West, Thales A.P. & Grogan, Kelly A. & Swisher, Marilyn E. & Caviglia-Harris, Jill L. & Sills, Erin O. & Roberts, Dar A. & Harris, Daniel & Putz, Francis E., 2018. "Impacts of REDD+ payments on a coupled human-natural system in Amazonia," Ecosystem Services, Elsevier, vol. 33(PA), pages 68-76.
    10. Kim, Yeon-Su & Latifah, Sitti & Afifi, Mansur & Mulligan, Mark & Burke, Sophia & Fisher, Larry & Siwicka, Ewa & Remoundou, Kyriaki & Christie, Michael & Masek Lopez, Sharon & Jenness, Jeff, 2018. "Managing forests for global and local ecosystem services: A case study of carbon, water and livelihoods from eastern Indonesia," Ecosystem Services, Elsevier, vol. 31(PA), pages 153-168.
    11. Frey, Gregory E. & Kallayanamitra, Chalisa & Wilkens, Philadelphia & James, Natasha A., 2021. "Payments for forest-based ecosystem services in the United States: Magnitudes and trends," Ecosystem Services, Elsevier, vol. 52(C).
    12. 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.
    13. Weidong Xiao & Liquan Qu & Kai Li & Chuanxu Guo & Jie Li, 2022. "An Assessment of the Rational Range of Eco-Compensation Standards: A Case Study in the Nujiang Prefecture, Southwestern China," Land, MDPI, vol. 11(9), pages 1-17, August.
    14. Zhen, Huayang & Qiao, Yuhui & Zhao, Haijun & Ju, Xuehai & Zanoli, Raffaele & Waqas, Muhammad Ahmed & Lun, Fei & Knudsen, Marie Trydeman, 2022. "Developing a conceptual model to quantify eco-compensation based on environmental and economic cost-benefit analysis for promoting the ecologically intensified agriculture," Ecosystem Services, Elsevier, vol. 56(C).
    15. 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).
    16. 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.
    17. Anna Komarova, 2022. "State Regulation of Energy Transition and Economic Development," Energies, MDPI, vol. 15(12), pages 1-13, June.

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