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Why do payments for watershed services emerge? A cross-country analysis of adoption contexts

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  • Bösch, Matthias
  • Elsasser, Peter
  • Wunder, Sven

Abstract

Payments for watershed services (PWS) are an increasingly popular tool for watershed management, also in the Southern Hemisphere. However, the degree of PWS adoption varies across these countries: while frequently represented in Latin America, water-related payment schemes do not exist in large parts of Africa and Asia. The causes for these adoption differences have so far been little discussed. Here we address this knowledge gap with a quantitative cross-national assessment of factors influencing the decision to adopt PWS schemes across tropical countries. Based on hypotheses from the literature, we construct a logistic regression model, testing the explanatory power of various economic, institutional, and physical-geographic variables on PWS adoption. We show that especially factors associated with a country’s topography, hydrology, demographics, and institutions significantly influence the probability of PWS adoption. Our analysis of the de facto framework conditions for PWS adoption also has repercussion for where donor investments in PWS would most likely pay off.

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  • Bösch, Matthias & Elsasser, Peter & Wunder, Sven, 2019. "Why do payments for watershed services emerge? A cross-country analysis of adoption contexts," World Development, Elsevier, vol. 119(C), pages 111-119.
    • Handle: RePEc:eee:wdevel:v:119:y:2019:i:c:p:111-119
    DOI: 10.1016/j.worlddev.2019.03.010
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    4. Dongbin Hu & Mei Lin & Yang Chen, 2022. "Can Horizontal Ecological Compensation Improve the Water Environment in Cross-Provincial Watersheds?," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
    5. Huang, Dayan & Liu, Chengyi & Yan, Zehao & Kou, Aiju, 2023. "Payments for Watershed Services and corporate green innovation," International Review of Economics & Finance, Elsevier, vol. 87(C), pages 541-556.
    6. Dijana Vuletić & Silvija Krajter Ostoić & Klára Báliková & Mersudin Avdibegović & Kristina Potočki & Špela Pezdevšek Malovrh & Stjepan Posavec & Srđan Stojnić & Alessandro Paletto, 2021. "Stakeholders’ Opinions towards Water-Related Forests Ecosystem Services in Selected Southeast European Countries (Federation of Bosnia and Herzegovina, Croatia, Slovenia and Serbia)," Sustainability, MDPI, vol. 13(21), pages 1-16, October.
    7. Yonariza, & Andini, Bevi Astika & Mahdi, & Maynard, Simone, 2019. "Addressing knowledge gaps between stakeholders in payments for watershed services: Case of Koto Panjang hydropower plant catchment area, Sumatra, Indonesia," Ecosystem Services, Elsevier, vol. 39(C).
    8. Zeng, Qingmin & Brouwer, Roy & Wang, Yurong & Chen, Ligen, 2021. "Measuring the incremental impact of Payments for Watershed Services on water quality in a transboundary river basin in China," Ecosystem Services, Elsevier, vol. 51(C).
    9. Yang, Qiuyue & Yang, Zhen & Chen, Yumin, 2024. "The impact of trans-provincial watershed eco-compensation policy on carbon emissions: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 784-802.
    10. Sheng, Jichuan & Yang, Hongqiang, 2024. "Collaborative models and uncertain water quality in payments for watershed services: China’s Jiuzhou River eco-compensation," Ecosystem Services, Elsevier, vol. 70(C).

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