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Institutional performance of Payments for Environmental Services: An analysis of the Costa Rican Program

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  • Legrand, Thomas
  • Froger, Géraldine
  • Le Coq, Jean-François

Abstract

In the growing literature on “payments for environmental services” schemes, so far not much attention has been paid to their institutional dimensions when assessing their performance; this is especially true of the Costa Rican case. This paper provides an analysis of the institutional performance of the Costa Rican Payment for Environmental Services Program (PESP). While recognizing its low additionality, our analysis highlights its positive long-term and indirect environmental impacts via the discontinuation of agriculture and institutional interplays. It also recognizes social impact as a secondary objective of the program, concluding that its current social performance is poor. However, it concludes that the program has higher sustainability, due to its strong legitimacy, than Coasean analyses suggest by focusing solely on its financing. Our analysis shows the risks and limitations of Coasean recommendations that focus on improving PESP cost-effectiveness. It proposes instead to strengthen the program's strategic management, to give more importance to other modalities than the forest protection one and to improve other institutions of the forest sector. This includes stricter enforcement of the law prohibiting deforestation.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:forpol:v:37:y:2013:i:c:p:115-123
    DOI: 10.1016/j.forpol.2013.06.016
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    2. Lien, Aaron M. & Schlager, Edella & Lona, Ashly, 2018. "Using institutional grammar to improve understanding of the form and function of payment for ecosystem services programs," Ecosystem Services, Elsevier, vol. 31(PA), pages 21-31.
    3. Tran, Thi Thu Huong & Zeller, Manfred & Suhardiman, Diana, 2016. "Payments for ecosystem services in Hoa Binh province, Vietnam: An institutional analysis," Ecosystem Services, Elsevier, vol. 22(PA), pages 83-93.
    4. Manuschevich, Daniela & Sarricolea, Pablo & Galleguillos, Mauricio, 2019. "Integrating socio-ecological dynamics into land use policy outcomes: A spatial scenario approach for native forest conservation in south-central Chile," Land Use Policy, Elsevier, vol. 84(C), pages 31-42.
    5. Coralie Calvet & Claude Napoleone & Jean-Michel Salles & Syndhia Mathé & Hélène Rey-Valette & Leslie Carnoye & Rita Lopes & Valérie Boisvert & Philippe Méral & Jean-François Le Coq & Armelle Caron & O, 2015. "Ecosystem Services and Institutional Dynamics," Post-Print hal-03023959, HAL.
    6. Géraldine Froger & Valérie Boisvert & Philippe Méral & Jean-François Le Coq & Armelle Caron & Olivier Aznar, 2015. "Market-Based Instruments for Ecosystem Services between Discourse and Reality: An Economic and Narrative Analysis," Sustainability, MDPI, vol. 7(9), pages 1-17, August.
    7. R A Arriagada & E O Sills & P J Ferraro & S K Pattanayak, 2015. "Do Payments Pay Off? Evidence from Participation in Costa Rica’s PES Program," PLOS ONE, Public Library of Science, vol. 10(7), pages 1-17, July.
    8. Iván Pérez-Rubio & Daniel Flores & Christian Vargas & Francisco Jiménez & Iker Etxano, 2021. "To What Extent Are Cattle Ranching Landholders Willing to Restore Ecosystem Services? Constructing a Micro-Scale PES Scheme in Southern Costa Rica," Land, MDPI, vol. 10(7), pages 1-24, July.
    9. Rosendal, G. Kristin & Schei, Peter Johan, 2014. "How may REDD+ affect the practical, legal and institutional framework for ‘Payment for ecosystem services’ in Costa Rica?," Ecosystem Services, Elsevier, vol. 9(C), pages 75-82.
    10. 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.
    11. Le Coq, Jean-François & Froger, Geraldine & Pesche, Denis & Legrand, Thomas & Saenz, Fernando, 2015. "Understanding the governance of the Payment for Environmental Services Programme in Costa Rica: A policy process perspective," Ecosystem Services, Elsevier, vol. 16(C), pages 253-265.

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