An Agent-Based Sustainability Perspective on Payment for Ecosystem Services: Analytical Framework and Empirical Application

Zhenglei Xie, Bing-Bing Zhou, Hanzeyu Xu, Le Zhang and Jing Wang
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Zhenglei Xie: College of Marine Science & Engineering, Nanjing Normal University, Nanjing 210023, China
Bing-Bing Zhou: School of Sustainability, Arizona State University, Tempe, AZ 85287, USA
Hanzeyu Xu: School of Geography, Nanjing Normal University, Nanjing 210023, China
Le Zhang: School of Geography and Environment, Jiangxi Normal University, Nanchang 330022, China
Jing Wang: College of Marine Science & Engineering, Nanjing Normal University, Nanjing 210023, China

Sustainability, 2020, vol. 13, issue 1, 1-18

Abstract: Payment for Ecosystem Services (PES), a market-based policy instrument for the conservation and environmental management that aims to coordinate the interests of upstream and downstream ecosystem service (ES) stakeholders, has been adopted worldwide. However, the success of PES depends on the desirability of programs targeting rural communities and smallholders. In this article, an agent-based sustainability perspective on PES was proposed and applied to examine a PES case study of the Converting-Orchard-to-Forest (COF) project in Dongjiang Headwater Watershed (DHW). We used household interview-based information and associated secondary data to quantitatively assess the environmental consequences and livelihood impacts of the COF project. The findings show that: (1) the COF participants at the upstream suffered from substantial income loss due to decreased orchard area; (2) the participants’ chemical fertilizer and compound fertilizer consumption was larger than their nonparticipating counterparts; and (3) the COF participants and nonparticipants increased the material assets and reduced their fuelwood use and increased the liquefied petroleum gas. Our findings suggest that, because of the significant income loss experienced by the upstream participants, the COF program is unsustainable with the participants very likely to cultivate the orchard again once the COF project ends. The research provides insightful information regarding PES implementation and sustainability of similar PES schemes.

Keywords: Payment for Ecosystem Services; analytical framework; difference-in-difference; sustainability; household livelihood change; orchard plantation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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