IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v11y2021i3p21582440211040774.html
   My bibliography  Save this article

Estimate the Impact of Payments for Environmental Services on Local Livelihoods and Environment: An Application of Propensity Scores

Author

Listed:
  • Thang Quyet Nguyen
  • Nguyen Tan Huynh
  • Wen-Kai K. Hsu

Abstract

Payments for environmental services (PES) are usually considered as a useful tool to both protect the environment and generate multiple income streams for mountainous households who receive the payments, and thus, it has been widely implementing in many developing countries so far; however, the impact of it on local livelihoods and environment has been questioned. Therefore, the article aimed to evaluate the Vietnamese PES scheme’s effect on both environment and local livelihoods by surveying 282 households living in Quang Nam, Vietnam, and utilized the propensity score matching (PSM) technique to investigate the intervention policy’s influence. Furthermore, to evaluate PES’s effect on the environment, the article used Normalized Difference Vegetation Index (NDVI) as a measure of the photosynthetic level of forest trees. The calculation of NDVI relied on satellite images downloaded from the Moderate Resolution Imaging Spectroradiometer. The results indicated that (a) the natural forest status has been improved during PES implementation compared with that of pre-PES period regarding total forest areas, percentage of forest coverage, and vegetation cover; and (b) PES-participants have got a significantly lower income than nonparticipants regarding total annual income, agricultural income, and hired labor income. The limitation is that the impact of interventions on livelihoods and the environment is determined by the mutual combination of implemented programs rather than only the PES regime. So, we highly recommend that the future study separate the PES scheme’s actual impact to precisely evaluate the PES project’s effect on financial and environmental outcomes.

Suggested Citation

  • Thang Quyet Nguyen & Nguyen Tan Huynh & Wen-Kai K. Hsu, 2021. "Estimate the Impact of Payments for Environmental Services on Local Livelihoods and Environment: An Application of Propensity Scores," SAGE Open, , vol. 11(3), pages 21582440211, August.
  • Handle: RePEc:sae:sagope:v:11:y:2021:i:3:p:21582440211040774
    DOI: 10.1177/21582440211040774
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440211040774
    Download Restriction: no

    File URL: https://libkey.io/10.1177/21582440211040774?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
    ---><---

    References listed on IDEAS

    as
    1. Moros, Lina & Vélez, María Alejandra & Corbera, Esteve, 2019. "Payments for Ecosystem Services and Motivational Crowding in Colombia's Amazon Piedmont," Ecological Economics, Elsevier, vol. 156(C), pages 468-488.
    2. To, Phuc & Dressler, Wolfram, 2019. "Rethinking ‘Success’: The politics of payment for forest ecosystem services in Vietnam," Land Use Policy, Elsevier, vol. 81(C), pages 582-593.
    3. Kanchanaroek, Yingluck & Aslam, Uzma, 2018. "Policy schemes for the transition to sustainable agriculture—Farmer preferences and spatial heterogeneity in northern Thailand," Land Use Policy, Elsevier, vol. 78(C), pages 227-235.
    4. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    5. Riccardo D’Alberto & Matteo Zavalloni & Meri Raggi & Davide Viaggi, 2018. "AES Impact Evaluation With Integrated Farm Data: Combining Statistical Matching and Propensity Score Matching," Sustainability, MDPI, vol. 10(11), pages 1-24, November.
    6. Kwayu, Emmanuel J. & Paavola, Jouni & Sallu, Susannah M., 2017. "The livelihood impacts of the Equitable Payments for Watershed Services (EPWS) Program in Morogoro, Tanzania," Environment and Development Economics, Cambridge University Press, vol. 22(3), pages 328-349, June.
    7. Ezzine-de-Blas, Driss & Corbera, Esteve & Lapeyre, Renaud, 2019. "Payments for Environmental Services and Motivation Crowding: Towards a Conceptual Framework," Ecological Economics, Elsevier, vol. 156(C), pages 434-443.
    8. Shao, Shuai & Tian, Zhihua & Fan, Meiting, 2018. "Do the rich have stronger willingness to pay for environmental protection? New evidence from a survey in China," World Development, Elsevier, vol. 105(C), pages 83-94.
    9. Blundo-Canto, Genowefa & Bax, Vincent & Quintero, Marcela & Cruz-Garcia, Gisella S. & Groeneveld, Rolf A. & Perez-Marulanda, Lisset, 2018. "The Different Dimensions of Livelihood Impacts of Payments for Environmental Services (PES) Schemes: A Systematic Review," Ecological Economics, Elsevier, vol. 149(C), pages 160-183.
    10. Jones, Kelly W. & Muñoz Brenes, Carlos L. & Shinbrot, Xoco A. & López-Báez, Walter & Rivera-Castañeda, Andrómeda, 2018. "The influence of cash and technical assistance on household-level outcomes in payments for hydrological services programs in Chiapas, Mexico," Ecosystem Services, Elsevier, vol. 31(PA), pages 208-218.
    11. Hayes, Tanya & Murtinho, Felipe & Wolff, Hendrik, 2017. "The Impact of Payments for Environmental Services on Communal Lands: An Analysis of the Factors Driving Household Land-Use Behavior in Ecuador," World Development, Elsevier, vol. 93(C), pages 427-446.
    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. Sharma, Bijay P. & Cho, Seong-Hoon & Yu, T. Edward, 2019. "Designing cost-efficient payments for forest-based carbon sequestration: An auction-based modeling approach," Forest Policy and Economics, Elsevier, vol. 104(C), pages 182-194.
    14. Muttaqin, Muhammad Zahrul & Alviya, Iis & Lugina, Mega & Hamdani, Farid Almuhayat Uhib & Indartik,, 2019. "Developing community-based forest ecosystem service management to reduce emissions from deforestation and forest degradation," Forest Policy and Economics, Elsevier, vol. 108(C), pages 1-1.
    15. Kolinjivadi, Vijay & Adamowski, Jan & Kosoy, Nicolás, 2014. "Recasting payments for ecosystem services (PES) in water resource management: A novel institutional approach," Ecosystem Services, Elsevier, vol. 10(C), pages 144-154.
    16. Bottazzi, Patrick & Wiik, Emma & Crespo, David & Jones, Julia P.G., 2018. "Payment for Environmental “Self-Service”: Exploring the Links Between Farmers' Motivation and Additionality in a Conservation Incentive Programme in the Bolivian Andes," Ecological Economics, Elsevier, vol. 150(C), pages 11-23.
    17. Duong, Ngoc T.B. & De Groot, Wouter T., 2020. "The impact of payment for forest environmental services (PFES) on community-level forest management in Vietnam," Forest Policy and Economics, Elsevier, vol. 113(C).
    18. Pamela McElwee & Bernhard Huber & Thị Hải Vân Nguyễn, 2020. "Hybrid Outcomes of Payments for Ecosystem Services Policies in Vietnam: Between Theory and Practice," Development and Change, International Institute of Social Studies, vol. 51(1), pages 253-280, January.
    19. Wang, Ying & Bilsborrow, Richard E. & Zhang, Qi & Li, Jiangfeng & Song, Conghe, 2019. "Effects of payment for ecosystem services and agricultural subsidy programs on rural household land use decisions in China: Synergy or trade-off?," Land Use Policy, Elsevier, vol. 81(C), pages 785-801.
    20. Boyd, James & Banzhaf, Spencer, 2007. "What are ecosystem services? The need for standardized environmental accounting units," Ecological Economics, Elsevier, vol. 63(2-3), pages 616-626, August.
    21. Ito, Junichi & Feuer, Hart N. & Kitano, Shinichi & Asahi, Haruka, 2019. "Assessing the effectiveness of Japan's community-based direct payment scheme for hilly and mountainous areas," Ecological Economics, Elsevier, vol. 160(C), pages 62-75.
    22. 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.
    23. Antonio López-Pintor & Javier Sanz-Cañada & Ernesto Salas & Alejandro J. Rescia, 2018. "Assessment of Agri-Environmental Externalities in Spanish Socio-Ecological Landscapes of Olive Groves," Sustainability, MDPI, vol. 10(8), pages 1-25, July.
    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. Jones, Kelly W. & Avila Foucat, Sophie & Pischke, Erin C. & Salcone, Jacob & Torrez, David & Selfa, Theresa & Halvorsen, Kathleen E., 2019. "Exploring the connections between participation in and benefits from payments for hydrological services programs in Veracruz State, Mexico," Ecosystem Services, Elsevier, vol. 35(C), pages 32-42.
    2. Jones, Kelly W. & Powlen, Kathryn & Roberts, Ryan & Shinbrot, Xoco, 2020. "Participation in payments for ecosystem services programs in the Global South: A systematic review," Ecosystem Services, Elsevier, vol. 45(C).
    3. Lliso, Bosco & Pascual, Unai & Engel, Stefanie, 2021. "On the role of social equity in payments for ecosystem services in Latin America: A practitioner perspective," Ecological Economics, Elsevier, vol. 182(C).
    4. Maca-Millán, Stefany & Arias-Arévalo, Paola & Restrepo-Plaza, Lina, 2021. "Payment for ecosystem services and motivational crowding: Experimental insights regarding the integration of plural values via non-monetary incentives," Ecosystem Services, Elsevier, vol. 52(C).
    5. 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.
    6. Rasch, Sebastian & Wünscher, Tobias & Casasola, Francisco & Ibrahim, Muhammad & Storm, Hugo, 2021. "Permanence of PES and the role of social context in the Regional Integrated Silvo-pastoral Ecosystem Management Project in Costa Rica," Ecological Economics, Elsevier, vol. 185(C).
    7. Ding, Qian & Lu, Qiaoling & Wu, Jing & Zhou, Ting & Deng, Jinsong & Kong, Lingqiao & Yang, Wu, 2022. "Integrated assessment of a payment for ecosystem services program in China from the effectiveness, efficiency and equity perspective," Ecosystem Services, Elsevier, vol. 56(C).
    8. Teo Dang Do & Anchana NaRanong, 2019. "Livelihood and Environmental Impacts of Payments for Forest Environmental Services: A Case Study in Vietnam," Sustainability, MDPI, vol. 11(15), pages 1-22, August.
    9. Grillos, Tara & Bottazzi, Patrick & Crespo, David & Asquith, Nigel & Jones, Julia P.G., 2019. "In-kind conservation payments crowd in environmental values and increase support for government intervention: A randomized trial in Bolivia," Ecological Economics, Elsevier, vol. 166(C), pages 1-1.
    10. Authelet, Manon & Subervie, Julie & Meyfroidt, Patrick & Asquith, Nigel & Ezzine-de-Blas, Driss, 2021. "Economic, pro-social and pro-environmental factors influencing participation in an incentive-based conservation program in Bolivia," World Development, Elsevier, vol. 145(C).
    11. Bottazzi, Patrick & Wiik, Emma & Crespo, David & Jones, Julia P.G., 2018. "Payment for Environmental “Self-Service”: Exploring the Links Between Farmers' Motivation and Additionality in a Conservation Incentive Programme in the Bolivian Andes," Ecological Economics, Elsevier, vol. 150(C), pages 11-23.
    12. Giefer, Madeline M. & An, Li, 2022. "Divergent impacts of the grain to green program, landholdings, and demographic factors on livelihood diversification in rural China," World Development, Elsevier, vol. 156(C).
    13. Long, Kaisheng & Omrani, Hichem & Pijanowski, Bryan C., 2020. "Impact of local payments for ecosystem services on land use in a developed area of China: A qualitative analysis based on an integrated conceptual framework," Land Use Policy, Elsevier, vol. 96(C).
    14. Pham, Van Truong & Roongtawanreongsri, Saowalak & Ho, Thong Quoc & Tran, Phuong Hanh Niekdam, 2021. "Can payments for forest environmental services help improve income and attitudes toward forest conservation? Household-level evaluation in the Central Highlands of Vietnam," Forest Policy and Economics, Elsevier, vol. 132(C).
    15. McWherter, Brooke & Bauchet, Jonathan & Ma, Zhao & Grillos, Tara & Asquith, Nigel & Rathjen, Meagan & Markos, Andrea, 2022. "Compliance under control: Insights from an incentive-based conservation program in rural Bolivia," Ecological Economics, Elsevier, vol. 194(C).
    16. Nguyen, Van Thi Hai & McElwee, Pamela & Le, Hue Thi Van & Nghiem, Tuyen & Vu, Huong Thi Dieu, 2022. "The challenges of collective PES: Insights from three community-based models in Vietnam," Ecosystem Services, Elsevier, vol. 56(C).
    17. 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).
    18. Garrett, R.D. & Grabs, J. & Cammelli, F. & Gollnow, F. & Levy, S.A., 2022. "Should payments for environmental services be used to implement zero-deforestation supply chain policies? The case of soy in the Brazilian Cerrado," World Development, Elsevier, vol. 152(C).
    19. Shinichi Kitano, 2021. "Estimation of Determinants of Farmland Abandonment and Its Data Problems," Land, MDPI, vol. 10(6), pages 1-17, June.
    20. Kosoy, Nicolás & Corbera, Esteve, 2010. "Payments for ecosystem services as commodity fetishism," Ecological Economics, Elsevier, vol. 69(6), pages 1228-1236, April.

    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:sae:sagope:v:11:y:2021:i:3:p:21582440211040774. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: .

    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: SAGE Publications (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.