Payment for Environmental Services in Agricultural Landscapes: Economic Policies and Poverty Reduction in Developing Countries (Natural Resource Management and Policy)

293 Pages·2009·1.75 MB·English

by  Leslie Lipper

PAYMENT FOR ENVIRONMENTAL
SERVICES IN AGRICULTURAL
LANDSCAPES:
ECONOMIC POLICIES AND POVERTY
REDUCTION IN DEVELOPING COUNTRIES
NATURALRESOURCEMANAGEMENTANDPOLICY
Editor:
DavidZilberman
Dept.ofAgriculturalandResourceEconomics
UniversityofCalifornia,Berkeley
Berkeley,CA94720
EDITORIALSTATEMENT
Thereisagrowingawarenesstotherolethatnaturalresourcessuchaswater,land,forests,
andenvironmentalamenitiesplayinourlives.Therearemanycompetingusesfornatural
resources, and society is challenged to manage them for improving social well‐being.
Furthermore,theremaybedireconsequencestonaturalresourcesmismanagement.Renew-
ableresourcessuchaswater,land,andtheenvironmentarelinked,anddecisionsmadewith
regardtoonemayaffecttheothers.Policyandmanagementofnaturalresourcesnowrequire
interdisciplinary approach including natural and social sciences to correctly address our
societypreferences.
This series provides a collection of works containing most recent findings on economics,
management,andpolicyofrenewablebiologicalresourcessuchaswater,land,cropprotec-
tion,sustainableagriculture,technology,andenvironmentalhealth.Itincorporatesmodern
thinkingandtechniquesofeconomicsandmanagement.Booksinthisserieswillincorporate
knowledge and models of natural phenomena with economics and managerial decision
frameworkstoassessalternativeoptionsformanagingnaturalresourcesandenvironment.
TheSeriesEditor
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PAYMENT FOR ENVIRONMENTAL
SERVICES IN AGRICULTURAL
LANDSCAPES:
ECONOMIC POLICIES AND POVERTY
REDUCTION IN DEVELOPING COUNTRIES
Editedby
LESLIE LIPPER
FAO,Rome
TAKUMI SAKUYAMA
FAO,Rome
RANDY STRINGER
UniversityofAdelaide,GlenOsmond
DAVID ZILBERMAN
UniversityofCalifornia,Berkeley
Publishedbythe
FoodandAgricultureOrganizationoftheUnitedNations
and
SpringerScienceþBusinessMedia,LLC
Disclaimer:Thedesignationsemployedandthepresentationofmaterialinthispublication
do not imply the expression of any opinion whatsoever on the part of the Food and
AgricultureOrganizationoftheUnitedNationsconcerningthelegalstatusofanycountry,
territory, city or area of its authorities, or concerning the delimitation of its frontiers or
boundaries.Thementionofspecificcompaniesorproductsofmanufacturers,whetherornot
thesehavebeenpatented,doesnotimplythatthesehavebeenendorsedorrecommendedby
the Food and Agriculture Organization of the United Nations in preference to others of a
similarnaturethatarenotmentioned.Theviewsexpressedhereinarethoseoftheauthorsand
donotnecessarilyrepresentthoseoftheFoodandAgricultureOrganizationoftheUnited
Nations.
ISBN978-0-387-77354-4 e-ISBN978-0-387-72971-8
FAOISBN978-92-5-105830-5
LibraryofCongressControlNumber:2008939917
#FAO,2009
Allrightsreserved.Reproductionanddisseminationofmaterialinthisinformationproduct
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suchpermissionshouldbeaddressedtotheChief,ElectronicPublishingPolicyandSupport
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ThisbookisdedicatedtothememoryofKarmaKesang,whodiedinatragicriver
accident,aged35,whilecompletingthesurveyfortheBhutanchapter.Mayhislast
workbededicatedtothebenefitofallsentientbeings.
v
Preface
Agriculturaldevelopmentiswidelyrecognizedascrucialforpovertyreduction.At
thesametime,agriculturalexpansionandevermoreintensivepracticesarewidely
recognizedfortheircontributiontoecosystemdegradation.Lesswellrecognizedis
that, in many cases, agriculture offers the potential to generate both poverty
reductionandbetterenvironmentaloutcomes.Thestudiespresentedinthisvolume
look at one policy tool that may address this gap: payments for environmental
services(PES).PESprogramsofferthepotentialtoreducepovertybyfocusingon
low-incomeproducerswhoinhabit,manage,consume,andproduceimportantagro-
ecosystemservices.
The relatively long-term contracts in many PES programs can stabilize house-
holdincomeflows,providinggreateropportunitiesforinvestment.Suchprograms
canalsoenableproducerstodiversifytheirincomesources,thusreducingtherisks
to economic shocks. In many cases, incomes could grow further over time as
improvements in soil, water, and nutrient quality slow land degradation and en-
hanceagriculturalproductivity.
Otherpotentialbenefitsrangefrombetteraccesstofinance(basedonbetterland
quality and secure cash flows) to lower demand for children’s labor, resulting in
higherschoolattendanceandeventuallyincreasesinhumancapital.Local,national,
and global welfare could improve, too, as those producers sequester carbon and
reducesoilerosion,protectwildlifebufferzones,andproviderefugeforendangered
species, control watershed runoff, and safeguard the quality of streams, rivers, and
wetlands.
Much of the work presented in this volume results from findings of a research
programontheSocio-EconomicAnalysisandPolicyImplicationsoftheRolesof
AgricultureinDevelopingCountries(ROA Project).Theresearchproject,funded
bytheMinistryofAgriculture,ForestryandFisheriesoftheGovernmentofJapan,
andmanagedbytheUnitedNationsFoodandAgricultureOrganizationfrom2000
to 2007, aims at extending current thinking about the environmental, social, and
economicrolesofagriculture.
ThisvolumecomplementsexistingoutputsfromtheROAproject(availableon
the project website at http://www.fao.org/es/esa/roa/) and other deliverables from
ROA andthe ongoingresearch workon paymentsfor environmental servicesand
vii
viii Preface
poverty reduction at the Agricultural Development Economics Division (ESA) of
the FAO. These include (1) a Special Edition in Environment and Development
Economics(Vol.13,Issue3,June2008);(2)afull-dayLearningWorkshopaspart
of the 2006 International Association of Agricultural Economists Conference in
Australia’sGoldCoast,August2006;(3)FAO’sflagshippublication,TheStateof
FoodandAgriculture2007:PayingFarmersforEnvironmentalServices;and(4)a
website on PES in agricultural landscapes at http://www.fao.org/es/esa/PESAL/
index.html.AnimportantaimoftheROAprojectandtheESAresearchprogramis
tohelpmakecontributionstosustainabledevelopmentgoals,concepts,andresults,
actingasacatalystforchangeandpromotingconditionsinwhichtheruralpoorare
able to enhance environmental outcomes, raise their incomes, and live longer,
healthier,andmoreproductivelives.
A key motivation for the ROA project was to provide policy guidance for
improved development strategies, especially for more sustainable rural develop-
ment.TheROAresearchfindingscallattentiontoadiversesetofindirectenviron-
mental, social, and economic contributions of agriculture. The evidence suggests
that these indirect contributions are not well understood, seldom analyzed in the
context of development, and rarely reflected in national and rural development
policy strategies. This innovative research initiative reflects the FAO priorities of
poverty reduction, food security, and sustainable rural development – key goals
sharedbytheinternationalcommunity.
In addition to the financial and administrative support provided for the ROA
projectbytheGovernmentofJapanandFAO,manypeoplecontributedtomaking
this volume possible. The editors express their thanks and appreciation to Prabhu
Pingali, Kostas Stamoulis, Keith Wiebe, and Monika Zurek from FAO’s Agricul-
tural Development Economics Division (ESA). We thank Amor Nolan for her
excellenteditingandrelentlessdedicationtothisproject,andJennyAker,Jennifer
Alix-Garcia, John Forga´ch, Brian Gross, Thomas Koellner, Robin Marsh, and
DavidRoland-Holstforideasandsupportthroughouttheprocess.
RandyStringer
LeslieLipper
TakumiSakuyama
DavidZilberman
Contents
1 IntroductionandOverview ................................................ 1
RandyStringer,LeslieLipper,TakumiSakuyama,andDavidZilberman
2 PuttingPaymentsforEnvironmentalServicesintheContext
ofEconomicDevelopment ................................................. 9
LeslieLipper,NancyMcCarthy,andDavidZilberman
3 DesigningPaymentsforEnvironmentalServiceswithWeak
PropertyRightsandExternalInterests ................................. 35
StefanieEngelandCharlesPalmer
4 MarketingEnvironmentalServices ...................................... 59
AmirHeiman,YanhongJin,andDavidZilberman
5 EconomicsofCarbonSequestrationProjectsInvolving
Smallholders ............................................................... 77
OscarCacho
6 ConservationPaymentstoReduceWildlifeHabitat
FragmentationandDiseaseRisks ...................................... 103
RichardD.Horan,JasonF.Shogren,andBenjaminM.Gramig
7 PaymentsforEcosystemServices,PovertyandSustainability:
TheCaseofAgriculturalSoilCarbonSequestration ................ 133
JohnM.AntleandJetseJ.Stoorvogel
8 LessonsLearnedfromMexico’sPaymentforEnvironmental
ServicesProgram ....................................................... 163
JenniferAlix-Garcia,AlaindeJanvry,ElisabethSadoulet,
andJuanManuelTorreswiththeassistanceofJosefina
Bran˜aVarelaandMariaZorillaRamos
ix
x Contents
9 AgriculturalLandscapeExternalities,Agro-Tourism,
andRuralPovertyReductioninMorocco ............................ 189
KhalilAllali
10 ExploringEnvironmentalServicesIncentivePoliciesfor
thePhilippinesRiceSector:TheCaseofIntra-Species
AgrobiodiversityConservation ......................................... 221
NobuhikoFuwaandAsaJoseU.Sajise
11 AssessingtheFeasibilityofWetlandsConservation:Using
PaymentsforEcosystemServicesinPallisa,Uganda ................ 239
ImeldaNalukenge,JohnAntle,andJetseStoorvogel
12 ManagingWildlifeDamagetoAgricultureinBhutan:Conflicts,
CostsandCompromise ................................................. 255
KarmaUra,RandyStringer,andErwinBulte
13 Conclusion ............................................................... 275
DavidZilberman
Index ........................................................................... 279