Impact of Costa Rica's Program of Payments for Environmental Services on Land Use

Costa Rica's Program of Payments for Environmental Services (Pago de Servicios Ambientales, PSA) provides a unique opportunity to evaluate direct payments as a conservation policy tool. This paper reports evidence on how much more forest has b...

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Bibliographic Details
Main Authors: Sills, Erin, Arriagada, Rodrigo, Ferraro, Paul, Pattanayak, Subhrendu, Carrasco, Luis, Ortiz, Edgar, Cordero, Silvia, Caldwell, Katie, Andam, Kwaw
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
CO
Online Access:http://documents.worldbank.org/curated/en/2008/10/19304445/impact-costa-ricas-program-payments-environmental-services-land-use
http://hdl.handle.net/10986/17893
Description
Summary:Costa Rica's Program of Payments for Environmental Services (Pago de Servicios Ambientales, PSA) provides a unique opportunity to evaluate direct payments as a conservation policy tool. This paper reports evidence on how much more forest has been conserved in Costa Rica as a result of PSA contracts with landowners. Such evidence requires estimating a counterfactual outcome: how much forest would have been preserved if there had been no payments. By applying rigorous program evaluation methods that have been recommended for identifying the causal effects of conservation policies, we find that the PSA program does result in a small but statistically significant increase in the area of forest conserved.