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Compensation for Environmental Services and Rural Communities: Lessons from the Americas

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  • Leopoldo Dimas
  • Susan Kandel
  • Deborah Barry
  • Herman Rosa

Abstract

In principle, payments for environmental services – such as watershed management, biodiversity conservation, and carbon sequestration – can advance the goals of both environmental protection and poverty reduction. A review of recent initiatives in the Americas suggests, however, that this desirable combination is not automatic. If payments for environmental services (PES) schemes are to be an effective vehicle for strengthening livelihoods in poor rural communities, they must be designed with that objective firmly in mind. This paper draws key lessons from diverse experiences in Costa Rica, Mexico, Brazil, El Salvador, and New York.

Suggested Citation

  • Leopoldo Dimas & Susan Kandel & Deborah Barry & Herman Rosa, 2004. "Compensation for Environmental Services and Rural Communities: Lessons from the Americas," Working Papers wp96, Political Economy Research Institute, University of Massachusetts at Amherst.
    • Handle: RePEc:uma:periwp:wp96
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    References listed on IDEAS

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    1. Edella Schlager & Elinor Ostrom, 1992. "Property-Rights Regimes and Natural Resources: A Conceptual Analysis," Land Economics, University of Wisconsin Press, vol. 68(3), pages 249-262.
    2. Pretty, Jules & Ward, Hugh, 2001. "Social Capital and the Environment," World Development, Elsevier, vol. 29(2), pages 209-227, February.
    3. James Boyce, 2004. "A Future for Small Farms? Biodiversity and Sustainable Agriculture," Working Papers wp86, Political Economy Research Institute, University of Massachusetts at Amherst.
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    Cited by:

    1. Coria, Jessica & Calfucura, Enrique, 2012. "Ecotourism and the development of indigenous communities: The good, the bad, and the ugly," Ecological Economics, Elsevier, vol. 73(C), pages 47-55.
    2. Nicolas Kosoy & Miguel Martinez-Tuna & Roldan Muradian & Joan Martinez-Alier, "undated". "Payments for Environmental Services in Watersheds: Insights From a Comparative Study of three Cases in Central America," UHE Working papers 2006_01, Universitat Autònoma de Barcelona, Departament d'Economia i Història Econòmica, Unitat d'Història Econòmica.
    3. Pascual, Unai & Muradian, Roldan & Rodríguez, Luis C. & Duraiappah, Anantha, 2010. "Exploring the links between equity and efficiency in payments for environmental services: A conceptual approach," Ecological Economics, Elsevier, vol. 69(6), pages 1237-1244, April.
    4. Chapman, Mollie & Satterfield, Terre & Wittman, Hannah & Chan, Kai M.A., 2020. "A payment by any other name: Is Costa Rica’s PES a payment for services or a support for stewards?," World Development, Elsevier, vol. 129(C).
    5. Jing Gong & Hongyan Du & Zhi Wang, 2022. "Analysis of the Influences of Ecological Compensation Projects on Transfer Employment of Rural Labor from the Perspective of Capability," Land, MDPI, vol. 11(9), pages 1-14, September.
    6. Yu, Bing & Xu, Linyu, 2016. "Review of ecological compensation in hydropower development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 729-738.
    7. Nagesh Kumar & Kevin P. Gallagher, 2007. "Relevance of ‘Policy Space’ for Development : Implications for Multilateral Trade Negotiations," Trade Working Papers 22111, East Asian Bureau of Economic Research.
    8. Bremer, Leah L. & Farley, Kathleen A. & Lopez-Carr, David & Romero, José, 2014. "Conservation and livelihood outcomes of payment for ecosystem services in the Ecuadorian Andes: What is the potential for ‘win–win’?," Ecosystem Services, Elsevier, vol. 8(C), pages 148-165.
    9. Aza, A. & Riccioli, F. & Di Iacovo, F., 2021. "Optimising payment for environmental services schemes by integrating strategies: The case of the Atlantic Forest, Brazil," Forest Policy and Economics, Elsevier, vol. 125(C).
    10. Fisher, Brendan & Christopher, Treg, 2007. "Poverty and biodiversity: Measuring the overlap of human poverty and the biodiversity hotspots," Ecological Economics, Elsevier, vol. 62(1), pages 93-101, April.
    11. Galluzzo, Nicola, 2015. "Role And Effect Of Agroforesty Subsides Allocated By The Common Agricultural Policy In Italian Farms," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3(1), pages 1-13, January.
    12. Mombo, Felister & Lusambo, Leopold & Speelman, Stijn & Buysse, Jeroen & Munishi, Pantaleo & van Huylenbroeck, Guido, 2014. "Scope for introducing payments for ecosystem services as a strategy to reduce deforestation in the Kilombero wetlands catchment area," Forest Policy and Economics, Elsevier, vol. 38(C), pages 81-89.
    13. Victor A. Akujuru & Les Ruddock, 2014. "Incorporation of Socio-Cultural Values in Damage Assessment Valuations of Contaminated Lands in the Niger Delta," Land, MDPI, vol. 3(3), pages 1-18, July.
    14. James Boyce, 2004. "A Future for Small Farms? Biodiversity and Sustainable Agriculture," Working Papers wp86, Political Economy Research Institute, University of Massachusetts at Amherst.
    15. Kosoy, Nicolas & Martinez-Tuna, Miguel & Muradian, Roldan & Martinez-Alier, Joan, 2007. "Payments for environmental services in watersheds: Insights from a comparative study of three cases in Central America," Ecological Economics, Elsevier, vol. 61(2-3), pages 446-455, March.
    16. Huber-Stearns, Heidi R. & Goldstein, Joshua H. & Duke, Esther A., 2013. "Intermediary roles and payments for ecosystem services: A typology and program feasibility application in Panama," Ecosystem Services, Elsevier, vol. 6(C), pages 104-116.
    17. 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.
    18. Bole Pan & Haoxuan Tan & Bojun Mao & Yixian Shen & Zhuoyuan Lu & Yongzhang Pan & Wei Zuo, 2020. "An Ecological Compensation Model for Liuxi River Basin Based on Emission Rights," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 9(2), pages 128-128, March.

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