Economic experiments for collective action in Kyrgyzstan: Implications for Payments for Ecosystem Services (PES)
Authors: Vijay Kolinjivadi
Abstract: The scholarship and empirical application of ‘payment for ecosystem services’ (PES) schemes has tended to focus on contract design and conditionality of payments rather than fundamentally examining whether incentives do indeed influence behaviour in desired ways. In this paper, a set of incentive framed treatments are introduced to existing institutions promoting otherwise unpaid collective action in order to explore the effects of incentive provision on the propensity to participate in the maintenance of collectively owned irrigation canals. The experiments take place in Kyrgyzstan, where the first PES in the region is being piloted. We reveal the close interplay between the framing of incentives, the influence of village leaders mobilizing collective activity and social norms of reciprocity, trust and enforcement associated with village leaders mobilizing collective work. Each framed experiment exhibits a unique configuration of ‘I’ ‘We’ and other regarding rationalities, providing useful implications for this new frontier of PES implementation.
Farmers’ perceived cost of land use restrictions
Authors: Sebastien Lizin, Steven Van Passel, eloi schreurs
Abstract: This paper reports on the findings from discrete choice experiments designed to estimate farmers’ perceived costs of land use restrictions, i.e. crop restrictions, fertilizing restrictions, and usage restrictions, as opposed to having no such restrictions. To this end, hypothetical land purchasing decisions were simulated based on the information about productivity, lot size, distance to other land, driving time to home, land use restrictions, and price. Farmers from the Campine region (Belgium) were invited to participate in the survey as the agricultural land in this region still faces the effects of historical heavy metal contamination resulting in crop restrictions. The results from an error components logit and random parameter logit show that the average in-sample farmer is most averse towards fertilizing restrictions of all land use restrictions under study and that of all attributes land use restrictions are the most important factor in influencing farmers’ purchasing decisions.
Using Water Footprint and Valuation tools to support Reciprocal Watershed Agreements
Authors: Samuel Vionnet, Phil Covell, Jan Cassin, Nigel Asquith
Abstract: Worldwide water issues have been largely mediatized in the past few years. We observed that despite the in-crease of initiatives and tools in the field of water management, synergies between stakeholders are required to allow transformations to happen. This project aims at linking three existing tools that were rarely used together. The tools are: water footprint, water valuation (ecosystem services valuation) and reciprocal water-shed agreements. A case study was developed in Santa Cruz (Bolivia). We were able to calculate the water footprint for soybean and beef farmers and to value this ecosystem service provided by forests. Values ranged from 0.01 to 0.07 for rainfall and from 0.2 to 3 USD/m3 for freshwater. Those results were used to test scenarios of the impact of deforestation, highlighting quantitatively the relationship between stakeholders. This type of analysis has the potential to play an important role into the implementation of reciprocal watershed agreements.
Factors influencing payment levels in Payments for Ecosystem Services: evidence from a meta-analysis of water schemes in Latin America
Abstract: PES schemes are receiving great attention, while practical examples continue to be implemented worldwide. We carry out a meta-analysis of PES literature, searching to identify what factors determine payment levels and looking separately at buyers and sellers. A collection of 310 distinct payment transactions obtained from 40 PES schemes in ten Latin American countries was modelled using mixed linear models. Preliminary results suggest some interesting insights. For example, for both buyers and sellers, payments levels are higher when multiple services are the object of transaction, and when sellers engage in more than one type of action. The presence of intermediaries affects buyers’ payments but not sellers’ receipts. Further research will involve developing ‘extended’ models with a larger set of covariates and discussing results in the context of current debates on PES conceptualization.