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Exploring Environmental Services Incentive Policies for the Philippine Rice Sector: The Case of Intra-Species Agro Biodiversity Conservation

Nobuhiko Fuwa and Asa Sajise

MPRA Paper from University Library of Munich, Germany

Abstract: This paper considers a hypothetical scheme of green payments to induce inter-specific agrobiodiversity in the context of Philippine rice farming. We empirically estimate a model of farmer behavior and then simulate the consequences of alternative (hypothetical) PES schemes under a fixed budget constraint. We find that, under this particular application, there is a clear trade-off between the two policy goals of enhancing biodiversity and poverty reduction. Even the totally untargeted lump-sum subsidy would have a larger poverty reduction impact than would the first-best conservation subsidy payment scheme. Therefore, policymakers would be required to strike a delicate balance between the two competing policy objectives. In addition, there is also a clear trade-off between the efficiency of targeted conservation payment and the information requirement for implementing subsidy schemes.

Keywords: payments for environmental services (PES); biodiversity; conservation; poverty; rice; Philippines (search for similar items in EconPapers)
JEL-codes: O13 Q56 Q57 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (2)

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Chapter: Exploring Environmental Services Incentive Policies for the Philippines Rice Sector: The Case of Intra-Species Agrobiodiversity Conservation (2009)
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