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Local Effects of Payments for Ecosystem Services on Rural Poverty

Author

Listed:
  • Laura Villalobos

    (Salisbury University)

  • Juan Robalino

    (University of Costa Rica)

  • Catalina Sandoval

    (Costa Rican Central Bank)

  • Francisco Alpízar

    (Wageningen University)

Abstract

This paper estimates the local effects of a Payment for Ecosystem Services (PES) program on income-based poverty rates in rural areas of Costa Rica between 2007–2009. Using household surveys and spatial geographic data, we are able to control for socioeconomic and geographic characteristics at the individual and census-tract level. Our results suggest that while payments did not affect poverty rates at the national level, poverty did increase in places where PES had the greatest effect on deforestation. This effect is stronger for uneducated males, who tend to work in agricultural activities. The trade-off between ecosystem services provision and poverty is not ubiquitous and, when present, could be addressed by targeting those groups that are most affected.

Suggested Citation

  • Laura Villalobos & Juan Robalino & Catalina Sandoval & Francisco Alpízar, 2023. "Local Effects of Payments for Ecosystem Services on Rural Poverty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(3), pages 753-774, March.
    • Handle: RePEc:kap:enreec:v:84:y:2023:i:3:d:10.1007_s10640-022-00733-7
    DOI: 10.1007/s10640-022-00733-7
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    More about this item

    Keywords

    Payments for ecosystem services; Poverty; Environment and development; Forest conservation;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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