Assessing the Economy-Wide Effects of Costa Rica's Payments for Environmental Services Program

Assessing the Economy-Wide Effects of Costa Rica's Payments for Environmental Services Program

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:	Ross, Martin, Depro, Brooks, Pattanayak, Subhrendu K.
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	AGRICULTURAL COMMODITIES AGRICULTURAL LAND AGRICULTURAL LANDS AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURAL SECTOR AGRICULTURAL USES AGRICULTURE AGROFORESTRY AREA OF FOREST BIODIVERSITY BIODIVERSITY CONSERVATION BUDGET CONSTRAINTS CAPITAL FORMATION CARBON CHANGES IN PRICES CLIMATE CLIMATE CHANGE CLIMATE CHANGE MITIGATION CONSERVATION POLICIES CONSUMERS CONSUMPTION PATTERNS DAMAGE FUNCTION DEBT DEFORESTATION DEMAND ANALYSIS DEVELOPMENT POLICY DYNAMIC ANALYSIS DYNAMIC MODEL ECONOMIC ACTIVITY ECONOMIC BEHAVIORS ECONOMIC DATA ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC IMPACTS ECONOMIC MODELS ECONOMIC OUTCOMES ECONOMIC POLICIES ECONOMIC RESEARCH ECONOMIC SECTORS ECONOMIC THEORY ECONOMICS ECONOMISTS ELASTICITIES ELASTICITY ELECTRICITY GENERATION EMISSIONS ENVIRONMENTAL ENVIRONMENTAL BENEFITS ENVIRONMENTAL IMPACTS ENVIRONMENTAL POLICIES ENVIRONMENTAL QUALITY EQUILIBRIUM EQUIVALENT VARIATION EXPENDITURES EXPORT DEMANDS EXPORTS EXTERNALITIES FACTOR DEMAND FISH FISHING FOREST FOREST CONSERVATION FOREST CONVERSION FOREST COVER FOREST ENGINEERING FOREST LAND FOREST LANDS FOREST MANAGEMENT FOREST POLICIES FOREST PROTECTION FOREST SECTOR FOREST STRATEGY FORESTRY FORESTS FOSSIL FUELS FREE TRADE FUTURE RESEARCH GDP GENERAL EQUILIBRIUM ANALYSIS GENERAL EQUILIBRIUM MODEL GOVERNMENT PURCHASES GOVERNMENT SUBSIDIES GREENHOUSE GASES GROSS DOMESTIC PRODUCT HETEROGENEITY HOUSEHOLD CONSUMPTION IMPACTS OF CLIMATE CHANGE IMPORTS INCOME INCOME DISTRIBUTION INCOME HOUSEHOLDS INTERMEDIATE INPUTS INTERNATIONAL PAYMENTS LABOR FORCE LABOR MARKETS LAND DEGRADATION LAND ECONOMICS LAND FOR AGRICULTURE LAND OWNERS LAND OWNERSHIP LAND PRODUCTIVITY LAND RENTAL LAND USE LAND-USE LAND-USE CHANGE LOGGING MACROECONOMIC ADJUSTMENT MACROECONOMIC CONDITIONS MACROECONOMIC POLICY NATIONAL ECONOMY NATURAL RESOURCE NATURAL RESOURCE MANAGEMENT NATURAL RESOURCES OPEN ACCESS OPEN ECONOMY OUTPUT DECLINES PARTIAL EQUILIBRIUM ANALYSIS PASTURE PASTURES POLICY ANALYSIS POLICY MAKERS POLICY RELEVANCE POLICY SCENARIOS POLLUTION POLLUTION ABATEMENT POPULATION GROWTH POSITIVE EFFECTS PRICE CHANGES PRICE LEVELS PRODUCTION COSTS PRODUCTION FUNCTIONS PROFIT MAXIMIZATION PROPERTY RIGHT PROPERTY RIGHTS PUBLIC ECONOMICS PUBLIC GOODS QUANTITATIVE ANALYSIS RAIN FOREST CONSERVATION REFORESTATION RELATIVE PRICES RESOURCE ECONOMICS RESOURCE MANAGEMENT REVENUE LOSS SENSITIVITY ANALYSES SILVICULTURE SIMULATION TECHNIQUES SPILLOVER EFFECTS STATE FORESTRY STRUCTURAL ADJUSTMENT SUBSTITUTION SUSTAINABLE DEVELOPMENT TANGIBLE GOODS TAXATION TIMBER TIMBER INDUSTRIES TIMBER PRICES TOTAL OUTPUT TRADE LIBERALIZATION TRADE POLICY TRANSACTION COSTS UNINTENDED CONSEQUENCES UTILITY FUNCTIONS VALUE ADDED VALUE OF OUTPUT WAGE RATES WAGES WATERSHED WELFARE ANALYSIS WOOD WOOD PROCESSING
Online Access:	http://documents.worldbank.org/curated/en/2007/09/19304443/assessing-economy-wide-effects-costa-ricas-payments-environmental-services-program http://hdl.handle.net/10986/17895

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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.

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