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Payment for Ecosystem Services (PES) scheme design in rural Tanzania: Famers’ preferences for enforcement and payment options

Author

Listed:
  • Kaczan, David
  • Swallow, Brent M.
  • Adamowicz, Wiktor L.

Abstract

The forests of the East Usambara Mountains, Tanzania, are internationally recognized as one of the world's most biodiverse ecosystems. However, despite past conservation efforts they face an ongoing threat from clearing for smallholder agriculture. One potential solution is a „payments for ecosystem services' (PES) program, where farmers are paid to protect forest that lies on their farms. To determine the design of PES program most likely to attract participation, careful documentation of farmer's policy preferences is required. We quantify these preferences and determine willingness to accept values using a choice experiment approach. Notable results are that payment for manure fertilizer (representing an investment in farm productivity) was highly effective at motivating farmer support, a group payment was highly ineffective, and that minimal program conditionality was not always preferred.

Suggested Citation

  • Kaczan, David & Swallow, Brent M. & Adamowicz, Wiktor L., 2011. "Payment for Ecosystem Services (PES) scheme design in rural Tanzania: Famers’ preferences for enforcement and payment options," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103673, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea11:103673
    DOI: 10.22004/ag.econ.103673
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    File URL: http://ageconsearch.umn.edu/record/103673/files/Kaczan%20-%20PES%20design%20in%20rural%20Tanzania%20_3_.pdf
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    References listed on IDEAS

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    1. 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.
    2. Nick Hanley & Robert Wright & Vic Adamowicz, 1998. "Using Choice Experiments to Value the Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 413-428, April.
    3. Adamowicz, Wiktor L. & Boxall, Peter C. & Williams, Michael & Louviere, Jordan, 1995. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments versus Contingent Valuation," Staff Paper Series 24126, University of Alberta, Department of Resource Economics and Environmental Sociology.
    4. Carlsson, Fredrik & Frykblom, Peter & Johan Lagerkvist, Carl, 2005. "Using cheap talk as a test of validity in choice experiments," Economics Letters, Elsevier, vol. 89(2), pages 147-152, November.
    5. 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.
    6. Hanley, Nick & Mourato, Susana & Wright, Robert E, 2001. " Choice Modelling Approaches: A Superior Alternative for Environmental Valuation?," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 435-462, July.
    7. repec:raf:wpaper:b14963 is not listed on IDEAS
    8. Gerard Wynn & Bob Crabtree & Jacqueline Potts, 2001. "Modelling Farmer Entry into the Environmentally Sensitive Area Schemes in Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(1), pages 65-82, January.
    9. repec:raf:wpaper:b15527 is not listed on IDEAS
    10. Swallow, Brent & Meinzen-Dick, Ruth & van Noordwijk, Meine, 2005. "Localizing demand and supply of environmental services: interactions with property rights, collective action and the welfare of the poor," CAPRi working papers 42, International Food Policy Research Institute (IFPRI).
    11. Arifin, Bustanul & Swallow, Brent M. & Suyanto, S. & Coe, Richard D., 2009. "A conjoint analysis of farmer preferences for community forestry contracts in the Sumber Jaya Watershed, Indonesia," Ecological Economics, Elsevier, vol. 68(7), pages 2040-2050, May.
    12. Costanza, Robert & d'Arge, Ralph & de Groot, Rudolf & Farber, Stephen & Grasso, Monica & Hannon, Bruce & Limburg, Karin & Naeem, Shahid & O'Neill, Robert V. & Paruelo, Jose, 1998. "The value of the world's ecosystem services and natural capital," Ecological Economics, Elsevier, vol. 25(1), pages 3-15, April.
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    Keywords

    Agricultural and Food Policy; Community/Rural/Urban Development; Environmental Economics and Policy; International Development; Land Economics/Use;

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