Payment for Ecosystem Services from Forests

Jennifer Alix-Garcia () and Hendrik Wolff ()
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Jennifer Alix-Garcia: University of Wisconsin-Madison
Hendrik Wolff: Simon Fraser University

No 8179, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Every year between 2000 and 2010, our planet lost native forests roughly the size of Costa Rica. (FAO, 2010). This rapid deforestation has dramatically changed the chemical composition of the world's atmosphere, the level of biodiversity, and the presence of vegetation key to maintaining watershed function and preventing landslides. There has been a boom in the design of local and international policy instruments to prevent further deforestation and encourage forest growth. This paper reviews the theory and evidence surrounding forest-related Payment for Ecosystem Services (PES) schemes intended to slow and reverse deforestation. We cover the most recent work touching on a range of issues related to PES programs, including research on targeting, contract design, environmental effectiveness, challenges to program implementation, spillovers, and distributional considerations of conditional cash transfers. We also highlight areas of potential future research.

Keywords: conditional cash transfers; climate change; reforestation; afforestation; deforestation; environmental policy; PES (search for similar items in EconPapers)
JEL-codes: H23 H43 J43 Q23 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2014-05
New Economics Papers: this item is included in nep-agr and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (37)

Published - published in: Annual Review of Resource Economics, 2014, 6, 361-380

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