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Participation in Payments for Ecosystem Services programmes in developing countries: The Chinese Sloping Land Conversion Programme

Katrina Mullan () and Andreas Kontoleon
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Katrina Mullan: North Carolina State University, Dept. of Forestry and Environmental Resources

No 42.2009, Environmental Economy and Policy Research Working Papers from University of Cambridge, Department of Land Economics

Abstract: This paper contributes to the limited existing empirical evidence on assessing household participation in Payments for Ecosystem Services (PES) programmes in developing countries. We examine this issue for the case of the Sloping Land Conversion Programme (SLCP) in China, one of the largest PES schemes in the world, using household and village level data. Our analysis examines the determinants of both current and future participation in the SLCP and makes three key contributions. First, we show the importance of incorporating the influence of programme administrators in the observed participation outcome. Secondly, we use a novel latent class approach to account for heterogeneity in the determinants of the household decision over whether to sign up to a PES programme. Thirdly, the empirical analysis focuses on the impact of market imperfections that are prevalent in developing countries. We find significant differences between households with good access to markets and those facing market imperfections.

Keywords: Payments for Ecosystem Services; programme participation; latent class model; China; Sloping Land Conversion Programme, separability. (search for similar items in EconPapers)
Date: 2009, Revised 2009
New Economics Papers: this item is included in nep-cna and nep-tra
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