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Payment for Environmental Services (PES) - LaForeT
Project
Project code: TI-WF-08-PID1741
Contract period: 01.01.2015
- 31.12.2018
Purpose of research: Inventory & Assessment
Payments for Environmental Services (PES) represent an alternative to fight deforestation through the provision of financial and non-financial incentives, and thus, possibly, improving current and future livelihoods. Different types of environmental services, whether market or government based, could strengthen their effectiveness and efficiency when institutional factors are taken into account. Understanding this complex human-nature interaction demands a deeper knowledge of the formal rules and informal constraints influencing them. Formal rules (constitutions, property rights and laws) and informal constraints (customs, traditions and codes of conduct) represent the institutional factors probably influencing PES performance. Said constraints and rules may be shaped not only by previous and existing environmental conditions and formal frameworks but also by present and future individual/group motivations and beliefs.
Although deforestation negatively affects diverse regions in the world, its impact is easily recognized in Latin America and Asia. Ecuador and the Philippines represent a special interest for our research since the existence of functioning Payment for Environmental Services (PES) schemes, through financial or non-financial incentives, shows that the use of this type of incentive may help promote forest conservation. Therefore, in order to comprehend the mechanisms through which involved actors reach their decisions, it is important to identify an appropriate environmental service and its scope. Although providing a consensual definition of PES is troublesome, a seminal contribution focuses on market transactions where a voluntary agreement between a buyer and a provider occurs. However, many PES schemes rely heavily on governmental intervention exposing their public goods characteristics. Hence, PES design and implementation calls for an understanding of environmental socio-economic conditions and the political settings influencing its outcomes. Within this context, it is of significant importance to fully assess the effectiveness and efficiency of PES schemes taking into account the institutional factors present, the type of environmental service provided and the extent to which they may alleviate poverty. Our final goal is to provide an instrument capable of assessing several policy scenarios under diverse conditions.
We aim to conduct an institutional economic analysis, combined with environmental valuation approaches (CVM) in order to assess the efficiency of PES schemes. We identify a theoretical and analytical framework suitable for a proper identification of a relevant environmental service. In order to gather accurate socioeconomic data and information extracted from selected geographical locations, a specific questionnaire is designed.
Which elements of an existing institutional framework have the strongest impact on PES design/performance?
How could we better shape/identify PES to improve efficiency and effectiveness in the allocation of funds (whether private or public)?
Could PES serve for poverty alleviation purposes? If so, to what extent and at what cost?
Section overview
Subjects
- Forestry
- Agroeconomics
Framework programme
Funding programme
Excutive institution
Institute of International Forestry and Forest Economics (TI-IW)