Skip to main content Accessibility help
×
×
Home

When could payments for environmental services benefit the poor?

  • DAVID ZILBERMAN (a1), LESLIE LIPPER (a2) and NANCY MCCARTHY (a3)

Abstract

Since modification of agricultural production choices in developing countries often provides positive environmental externalities to people in developed countries, payment for environmental services (PES) has become an important topic in the context of economic development and poverty reduction. We consider two broad categories of PES programs, land-diversion programs, where lands are diverted from agriculture to other uses, and working-land programs, where agricultural production activities are modified to achieve environmental objectives. PES programs are generally good for landowners. The distribution of land and land quality is critical in determining poverty impacts. Where ES and agricultural productivity are negatively correlated and the poor own lands of low agricultural quality, they stand to gain from PES programs. Consumers and wage laborers may lose where food supply is inelastic and programs reduce labor demand. Working-land programs may have better distributional effects than diversion programs.

Copyright

Corresponding author

Corresponding author.

References

Hide All
Babcock, B.A., Lakshminarayan, P.G., Wu, J., and Zilberman, D. 1997, ‘Targeting tools for the purchase of environmental amenities’, Land Economics 73: 325339.
Cacho, O. and Lipper, L. 2006, ‘Abatement and transaction costs of carbon-sink projects involving smallholders’, ESA working paper No. 06-13, Agricultural and Development Economics Division of the FAO http://www.fao.org/es/esa
Coase, R. 1960, ‘The problem of social costs’, Journal of Law and Economics 44: 144.
Dixon, J. and Gulliver, A. with Gibbon, D. 2001, Farming Systems and Poverty, Rome and Washington, DC: FAO and World Bank.
Just, R.E., Hueth, D.L., and Schmitz, A. 2004, The Welfare Economics of Public Policy: A Practical Approach to Project and Policy Evaluation, Northampton, MA: Edward Elgar Publishing Company.
Just, R.E. and Zilberman, D. 1988, ‘The effects of agricultural development policies on income distribution and technological change in agriculture’, Journal of Development Economics 28: 193216.
Landell-Mills, N. and Porras, I.T. 2002, ‘Silver bullet or fools’ gold? A global review of markets for forest environmental services and their impact on the poor’, International Institute for Environment and Development (IIED), London.
Lipper, L. and Cavatassi, R. 2004, ‘Land use change, poverty and carbon sequestration’, Environmental Management 33 (S1): 374387.
Mussa, M. and Rosen, S. 1978, ‘Monopoly and product quality’, Journal of Economic Theory 18: 301317.
Pagiola, S., Arcenas, A., and Platais, G. 2005, ‘Can payments for environmental services help reduce poverty? An exploration of the issues and the evidence to date from Latin America’, World Development 33: 237253.
Pfaff, A., Robalino, J., and Sanchez-Azofeifa, A. 2006, ‘Payments for environmental services: empirical analysis for Costa Rica’, paper presented at the International Conference on Economics of Poverty, Environment and Natural Resource Use, 17–19 May 2006 Wageningen University, Netherlands.
Singh, I., Squire, L., and Strauss, J. 1986, Agricultural Household Models, Extensions, Applications and Policy, Washington, DC: Johns Hopkins University Press for the World Bank.
Tinbergen, J. 1956, Economic Policy: Principles and Design, Amsterdam: North-Holland.
Wu, J., Zilberman, D., and Babcock, B. 2001, ‘Environmental and distributional impacts of conservation targeting strategies’, Journal of Environmental Economics and Management 41: 333350.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Environment and Development Economics
  • ISSN: 1355-770X
  • EISSN: 1469-4395
  • URL: /core/journals/environment-and-development-economics
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Metrics

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed