IDEAS home Printed from https://ideas.repec.org/a/eee/ecoser/v9y2014icp83-97.html
   My bibliography  Save this article

Evaluating the outcomes of payments for ecosystem services programmes using a capital asset framework

Author

Listed:
  • Hejnowicz, Adam P.
  • Raffaelli, David G.
  • Rudd, Murray A.
  • White, Piran C.L.

Abstract

There is a limited understanding of the conditions under which payments for ecosystem services (PES) programmes achieve improvements in ecosystem service (ES) flows, enhance natural resource sustainability or foster sustainable livelihoods. We used a capital asset framework to evaluate PES programmes in terms of their social, environmental, economic and institutional outcomes, focusing on efficiency, effectiveness and equity trade-offs. We found that PES schemes can provide positive conservation and development outcomes with respect to livelihoods, land-use change, household and community incomes, and governance. However, programmes differ with regards to contract agreements, payment modes, and compliance, and have diverse cross-sector institutional arrangements that remain primarily state-structured and external donor-financed. There is a consistent lack of focus on evaluating and fostering human, social and institutional capital. This reflects general inattention to how PES programmes consider the causal links between ES and outcomes. To enhance ES production and PES scheme accessibility and participation, we recommend strengthening the linkages between ES production and land-use practices, boosting private and voluntary sector involvement, encouraging property rights and tenure reform, improving financial viability, and adequately accounting for the distribution of programme costs and benefits among participants.

Suggested Citation

  • Hejnowicz, Adam P. & Raffaelli, David G. & Rudd, Murray A. & White, Piran C.L., 2014. "Evaluating the outcomes of payments for ecosystem services programmes using a capital asset framework," Ecosystem Services, Elsevier, vol. 9(C), pages 83-97.
  • Handle: RePEc:eee:ecoser:v:9:y:2014:i:c:p:83-97
    DOI: 10.1016/j.ecoser.2014.05.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2212041614000382
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ecoser.2014.05.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Agrawal, Arun, 2001. "Common Property Institutions and Sustainable Governance of Resources," World Development, Elsevier, vol. 29(10), pages 1649-1672, October.
    2. 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.
    3. Wunder, Sven, 2008. "Payments for environmental services and the poor: concepts and preliminary evidence," Environment and Development Economics, Cambridge University Press, vol. 13(3), pages 279-297, June.
    4. Huber-Stearns, Heidi R. & Goldstein, Joshua H. & Duke, Esther A., 2013. "Intermediary roles and payments for ecosystem services: A typology and program feasibility application in Panama," Ecosystem Services, Elsevier, vol. 6(C), pages 104-116.
    5. Bennett, Nathan & Lemelin, Raynald Harvey & Koster, Rhonda & Budke, Isabel, 2012. "A capital assets framework for appraising and building capacity for tourism development in aboriginal protected area gateway communities," Tourism Management, Elsevier, vol. 33(4), pages 752-766.
    6. McCann, Laura & Colby, Bonnie & Easter, K. William & Kasterine, Alexander & Kuperan, K.V., 2005. "Transaction cost measurement for evaluating environmental policies," Ecological Economics, Elsevier, vol. 52(4), pages 527-542, March.
    7. 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.
    8. Derissen, Sandra & Latacz-Lohmann, Uwe, 2013. "What are PES? A review of definitions and an extension," Ecosystem Services, Elsevier, vol. 6(C), pages 12-15.
    9. Paul Conal Winters & Vera Chiodi, 2011. "Human Capital Investment And Long‐Term Poverty Reduction In Rural Mexico," Journal of International Development, John Wiley & Sons, Ltd., vol. 23(4), pages 515-538, May.
    10. Omer Moav and & Zvika Neeman, 2012. "Saving Rates and Poverty: The Role of Conspicuous Consumption and Human Capital," Economic Journal, Royal Economic Society, vol. 122(563), pages 933-956, September.
    11. Fang Cai & Song Han & Dan Li, 2012. "Institutional herding in the corporate bond market," International Finance Discussion Papers 1071, Board of Governors of the Federal Reserve System (U.S.).
    12. Gómez-Baggethun, Erik & de Groot, Rudolf & Lomas, Pedro L. & Montes, Carlos, 2010. "The history of ecosystem services in economic theory and practice: From early notions to markets and payment schemes," Ecological Economics, Elsevier, vol. 69(6), pages 1209-1218, April.
    13. 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.
    14. Farley, Joshua & Costanza, Robert, 2010. "Payments for ecosystem services: From local to global," Ecological Economics, Elsevier, vol. 69(11), pages 2060-2068, September.
    15. Deal, Robert L. & Cochran, Bobby & LaRocco, Gina, 2012. "Bundling of ecosystem services to increase forestland value and enhance sustainable forest management," Forest Policy and Economics, Elsevier, vol. 17(C), pages 69-76.
    16. Wendland, Kelly J. & Honzák, Miroslav & Portela, Rosimeiry & Vitale, Benjamin & Rubinoff, Samuel & Randrianarisoa, Jeannicq, 2010. "Targeting and implementing payments for ecosystem services: Opportunities for bundling biodiversity conservation with carbon and water services in Madagascar," Ecological Economics, Elsevier, vol. 69(11), pages 2093-2107, September.
    17. Kathleen McAfee, 2012. "The Contradictory Logic of Global Ecosystem Services Markets," Development and Change, International Institute of Social Studies, vol. 43(1), pages 105-131, January.
    18. Sarah Milne & Bill Adams, 2012. "Market Masquerades: Uncovering the Politics of Community-level Payments for Environmental Services in Cambodia," Development and Change, International Institute of Social Studies, vol. 43(1), pages 133-158, January.
    19. Marshall, Graham R., 2013. "Transaction Costs, Collective Action And Adaptation In Managing Social-Ecological Systems," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152166, Australian Agricultural and Resource Economics Society.
    20. Murat Arsel & Bram Büscher, 2012. "Nature™ Inc.: Changes and Continuities in Neoliberal Conservation and Market-based Environmental Policy," Development and Change, International Institute of Social Studies, vol. 43(1), pages 53-78, January.
    21. Bulte, Erwin H. & Lipper, Leslie & Stringer, Randy & Zilberman, David, 2008. "Payments for ecosystem services and poverty reduction: concepts, issues, and empirical perspectives," Environment and Development Economics, Cambridge University Press, vol. 13(3), pages 245-254, June.
    22. Willemen, Louise & Drakou, Evangelia G. & Dunbar, Martha B. & Mayaux, Philippe & Egoh, Benis N., 2013. "Safeguarding ecosystem services and livelihoods: Understanding the impact of conservation strategies on benefit flows to society," Ecosystem Services, Elsevier, vol. 4(C), pages 95-103.
    23. McCann, Laura, 2013. "Transaction costs and environmental policy design," Ecological Economics, Elsevier, vol. 88(C), pages 253-262.
    24. Rudd, Murray A., 2000. "Live long and prosper: collective action, social capital and social vision," Ecological Economics, Elsevier, vol. 34(1), pages 131-144, July.
    25. Ingram, Jane Carter & Wilkie, David & Clements, Tom & McNab, Roan Balas & Nelson, Fred & Baur, Erick Hogan & Sachedina, Hassanali T. & Peterson, David Dean & Foley, Charles Andrew Harold, 2014. "Evidence of Payments for Ecosystem Services as a mechanism for supporting biodiversity conservation and rural livelihoods," Ecosystem Services, Elsevier, vol. 7(C), pages 10-21.
    26. Fauzi, Akhmad & Anna, Zuzy, 2013. "The complexity of the institution of payment for environmental services: A case study of two Indonesian PES schemes," Ecosystem Services, Elsevier, vol. 6(C), pages 54-63.
    27. Jere R. Behrman, 2011. "How much might human capital policies affect earnings inequalities and poverty?," Estudios de Economia, University of Chile, Department of Economics, vol. 38(1 Year 20), pages 8-41, June.
    28. 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, Springer;European Association of Environmental and Resource Economists, vol. 47(3), pages 371-394, November.
    29. Ferraro, Paul J., 2008. "Asymmetric information and contract design for payments for environmental services," Ecological Economics, Elsevier, vol. 65(4), pages 810-821, May.
    30. George Holmes, 2011. "Conservation's Friends in High Places: Neoliberalism, Networks, and the Transnational Conservation Elite," Global Environmental Politics, MIT Press, vol. 11(4), pages 1-21, November.
    31. Martin-Ortega, Julia & Ojea, Elena & Roux, Camille, 2013. "Payments for Water Ecosystem Services in Latin America: A literature review and conceptual model," Ecosystem Services, Elsevier, vol. 6(C), pages 122-132.
    32. Legrand, Thomas & Froger, Géraldine & Le Coq, Jean-François, 2013. "Institutional performance of Payments for Environmental Services: An analysis of the Costa Rican Program," Forest Policy and Economics, Elsevier, vol. 37(C), pages 115-123.
    33. Koellner, Thomas & Sell, Joachim & Navarro, Guillermo, 2010. "Why and how much are firms willing to invest in ecosystem services from tropical forests? A comparison of international and Costa Rican firms," Ecological Economics, Elsevier, vol. 69(11), pages 2127-2139, September.
    34. Marshall, Graham R., 2013. "Transaction costs, collective action and adaptation in managing complex social–ecological systems," Ecological Economics, Elsevier, vol. 88(C), pages 185-194.
    35. Kosoy, Nicolás & Corbera, Esteve, 2010. "Payments for ecosystem services as commodity fetishism," Ecological Economics, Elsevier, vol. 69(6), pages 1228-1236, April.
    36. 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.
    37. Tacconi, Luca, 2012. "Redefining payments for environmental services," Ecological Economics, Elsevier, vol. 73(C), pages 29-36.
    38. Asquith, Nigel M. & Vargas, Maria Teresa & Wunder, Sven, 2008. "Selling two environmental services: In-kind payments for bird habitat and watershed protection in Los Negros, Bolivia," Ecological Economics, Elsevier, vol. 65(4), pages 675-684, May.
    39. Börner, Jan & Wunder, Sven & Wertz-Kanounnikoff, Sheila & Tito, Marcos Rügnitz & Pereira, Ligia & Nascimento, Nathalia, 2010. "Direct conservation payments in the Brazilian Amazon: Scope and equity implications," Ecological Economics, Elsevier, vol. 69(6), pages 1272-1282, April.
    40. Lakhwinder Singh Kang & Payal, 2012. "Women on Corporate Boards: A Literature Review," Indian Journal of Corporate Governance, , vol. 5(1), pages 33-49, January.
    41. Vatn, Arild, 2010. "An institutional analysis of payments for environmental services," Ecological Economics, Elsevier, vol. 69(6), pages 1245-1252, April.
    42. Bennett, Michael T., 2008. "China's sloping land conversion program: Institutional innovation or business as usual?," Ecological Economics, Elsevier, vol. 65(4), pages 699-711, May.
    43. Subhrendu K. Pattanayak & Sven Wunder & Paul J. Ferraro, 2010. "Show Me the Money: Do Payments Supply Environmental Services in Developing Countries?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(2), pages 254-274, Summer.
    44. ., 2012. "Corporation and Credit," Chapters, in: The Social Economics of Thorstein Veblen, chapter 9, Edward Elgar Publishing.
    45. Feng Gu & John Q. Li, 2012. "Insider Trading and Corporate Information Transparency," The Financial Review, Eastern Finance Association, vol. 47(4), pages 645-664, November.
    46. Muradian, Roldan & Rival, Laura, 2012. "Between markets and hierarchies: The challenge of governing ecosystem services," Ecosystem Services, Elsevier, vol. 1(1), pages 93-100.
    47. Schomers, Sarah & Matzdorf, Bettina, 2013. "Payments for ecosystem services: A review and comparison of developing and industrialized countries," Ecosystem Services, Elsevier, vol. 6(C), pages 16-30.
    48. Kroeger, Timm, 2013. "The quest for the “optimal” payment for environmental services program: Ambition meets reality, with useful lessons," Forest Policy and Economics, Elsevier, vol. 37(C), pages 65-74.
    49. Wünscher, Tobias & Engel, Stefanie & Wunder, Sven, 2008. "Spatial targeting of payments for environmental services: A tool for boosting conservation benefits," Ecological Economics, Elsevier, vol. 65(4), pages 822-833, May.
    50. Rudd, Murray A., 2004. "An institutional framework for designing and monitoring ecosystem-based fisheries management policy experiments," Ecological Economics, Elsevier, vol. 48(1), pages 109-124, January.
    51. Daniels, Amy E. & Bagstad, Kenneth & Esposito, Valerie & Moulaert, Azur & Rodriguez, Carlos Manuel, 2010. "Understanding the impacts of Costa Rica's PES: Are we asking the right questions?," Ecological Economics, Elsevier, vol. 69(11), pages 2116-2126, September.
    52. Nicola Banks & David Hulme, 2012. "The role of NGOs and civil society in development and poverty reduction," Global Development Institute Working Paper Series 17112, GDI, The University of Manchester.
    53. Pascual, Unai & Muradian, Roldan & Rodríguez, Luis C. & Duraiappah, Anantha, 2010. "Exploring the links between equity and efficiency in payments for environmental services: A conceptual approach," Ecological Economics, Elsevier, vol. 69(6), pages 1237-1244, April.
    54. Bebbington, Anthony, 1999. "Capitals and Capabilities: A Framework for Analyzing Peasant Viability, Rural Livelihoods and Poverty," World Development, Elsevier, vol. 27(12), pages 2021-2044, December.
    55. 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.
    56. Bebbington, Anthony, 2005. "Donor-NGO relations and representations of livelihood in nongovernmental aid ahains," World Development, Elsevier, vol. 33(6), pages 937-950, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ma, Zhao & Bauchet, Jonathan & Steele, Diana & Godoy, Ricardo & Radel, Claudia & Zanotti, Laura, 2017. "Comparison of Direct Transfers for Human Capital Development and Environmental Conservation," World Development, Elsevier, vol. 99(C), pages 498-517.
    2. Schomers, Sarah & Matzdorf, Bettina, 2013. "Payments for ecosystem services: A review and comparison of developing and industrialized countries," Ecosystem Services, Elsevier, vol. 6(C), pages 16-30.
    3. Bauchet, Jonathan & Asquith, Nigel & Ma, Zhao & Radel, Claudia & Godoy, Ricardo & Zanotti, Laura & Steele, Diana & Gramig, Benjamin M. & Chong, Andrea Estrella, 2020. "The practice of Payments for Ecosystem Services (PES) in the Tropical Andes: Evidence from program administrators," Ecosystem Services, Elsevier, vol. 45(C).
    4. Sattler, Claudia & Matzdorf, Bettina, 2013. "PES in a nutshell: From definitions and origins to PES in practice—Approaches, design process and innovative aspects," Ecosystem Services, Elsevier, vol. 6(C), pages 2-11.
    5. Ola, Oreoluwa & Menapace, Luisa & Benjamin, Emmanuel & Lang, Hannes, 2019. "Determinants of the environmental conservation and poverty alleviation objectives of Payments for Ecosystem Services (PES) programs," Ecosystem Services, Elsevier, vol. 35(C), pages 52-66.
    6. Campanhão, Ligia Maria Barrios & Ranieri, Victor Eduardo Lima, 2019. "Guideline framework for effective targeting of payments for watershed services," Forest Policy and Economics, Elsevier, vol. 104(C), pages 93-109.
    7. Aguilar-Gómez, Carlos R. & Arteaga-Reyes, Tizbe T. & Gómez-Demetrio, William & à vila-Akerberg, Víctor D. & Pérez-Campuzano, Enrique, 2020. "Differentiated payments for environmental services: A review of the literature," Ecosystem Services, Elsevier, vol. 44(C).
    8. Martin-Ortega, Julia & Dekker, Thijs & Ojea, Elena & Lorenzo-Arribas, Altea, 2019. "Dissecting price setting efficiency in Payments for Ecosystem Services: A meta-analysis of payments for watershed services in Latin America," Ecosystem Services, Elsevier, vol. 38(C), pages 1-1.
    9. Kaiser, Josef & Krueger, Tobias & Haase, Dagmar, 2023. "Global patterns of collective payments for ecosystem services and their degrees of commodification," Ecological Economics, Elsevier, vol. 209(C).
    10. Jespersen, Kristjan & Gallemore, Caleb, 2018. "The Institutional Work of Payments for Ecosystem Services: Why the Mundane Should Matter," Ecological Economics, Elsevier, vol. 146(C), pages 507-519.
    11. Rodrigo Muniz & Maria João Cruz, 2015. "Making Nature Valuable, Not Profitable: Are Payments for Ecosystem Services Suitable for Degrowth?," Sustainability, MDPI, vol. 7(8), pages 1-27, August.
    12. Tacconi, Luca, 2012. "Redefining payments for environmental services," Ecological Economics, Elsevier, vol. 73(C), pages 29-36.
    13. Börner, Jan & Baylis, Kathy & Corbera, Esteve & Ezzine-de-Blas, Driss & Honey-Rosés, Jordi & Persson, U. Martin & Wunder, Sven, 2017. "The Effectiveness of Payments for Environmental Services," World Development, Elsevier, vol. 96(C), pages 359-374.
    14. Phan, Thu-Ha Dang & Brouwer, Roy & Hoang, Long Phi & Davidson, Marc David, 2017. "A comparative study of transaction costs of payments for forest ecosystem services in Vietnam," Forest Policy and Economics, Elsevier, vol. 80(C), pages 141-149.
    15. Bennett, Drew E. & Gosnell, Hannah, 2015. "Integrating multiple perspectives on payments for ecosystem services through a social–ecological systems framework," Ecological Economics, Elsevier, vol. 116(C), pages 172-181.
    16. Bremer, Leah L. & Farley, Kathleen A. & Lopez-Carr, David & Romero, José, 2014. "Conservation and livelihood outcomes of payment for ecosystem services in the Ecuadorian Andes: What is the potential for ‘win–win’?," Ecosystem Services, Elsevier, vol. 8(C), pages 148-165.
    17. Kumar, Pushpam & Kumar, Manasi & Garrett, Lucy, 2014. "Behavioural foundation of response policies for ecosystem management: What can we learn from Payments for Ecosystem Services (PES)," Ecosystem Services, Elsevier, vol. 10(C), pages 128-136.
    18. Sattler, Claudia & Trampnau, Susanne & Schomers, Sarah & Meyer, Claas & Matzdorf, Bettina, 2013. "Multi-classification of payments for ecosystem services: How do classification characteristics relate to overall PES success?," Ecosystem Services, Elsevier, vol. 6(C), pages 31-45.
    19. Hao Wang & Sander Meijerink & Erwin van der Krabben, 2020. "Institutional Design and Performance of Markets for Watershed Ecosystem Services: A Systematic Literature Review," Sustainability, MDPI, vol. 12(16), pages 1-26, August.
    20. García-Amado, Luis Rico & Pérez, Manuel Ruiz & Escutia, Felipe Reyes & García, Sara Barrasa & Mejía, Elsa Contreras, 2011. "Efficiency of Payments for Environmental Services: Equity and additionality in a case study from a Biosphere Reserve in Chiapas, Mexico," Ecological Economics, Elsevier, vol. 70(12), pages 2361-2368.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecoser:v:9:y:2014:i:c:p:83-97. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/ecosystem-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.