IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v193y2022ics0921800921003785.html
   My bibliography  Save this article

Achieving landscape patterns for biodiversity conservation through payments for ecosystem services – Evidence from a field experiment in Indonesia

Author

Listed:
  • Rudolf, Katrin
  • Edison, Edi
  • Wollni, Meike

Abstract

Payments for ecosystem services (PES) can encourage land owners to manage their land in a biodiversity-friendly way. To increase the effectiveness of PES for biodiversity conservation, incentives could be set to reach a minimum size of conservation area and a suitable spatial connectivity between conserved areas. However, little knowledge exists about which incentives most likely generate such landscape patterns since threshold effects and spatial connectivity have been mostly considered separately. Therefore, we present results from a framed field experiment with Indonesian oil palm farmers and compare the effectiveness between two conditional group payment schemes: In the first one, the size threshold payment, payments are made if at least three farmers in the group conserve. In the second one, an agglomeration payment, payments are made if at least three farmers with bordering land engage in conservation. Our results suggest that both PES designs are similarly effective in the absence of communication. Under both, communication increases conservation outcomes in the case of previous successful coordination and is ineffective in the case of previous coordination failure. Yet, for individuals who are reluctant to conserve, communication only increases conservation outcomes under the size threshold payment. We further discuss potential welfare implications of our results.

Suggested Citation

  • Rudolf, Katrin & Edison, Edi & Wollni, Meike, 2022. "Achieving landscape patterns for biodiversity conservation through payments for ecosystem services – Evidence from a field experiment in Indonesia," Ecological Economics, Elsevier, vol. 193(C).
    • Handle: RePEc:eee:ecolec:v:193:y:2022:i:c:s0921800921003785
    DOI: 10.1016/j.ecolecon.2021.107319
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800921003785
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecolecon.2021.107319?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Frank Heinemann & Rosemarie Nagel & Peter Ockenfels, 2009. "Measuring Strategic Uncertainty in Coordination Games," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(1), pages 181-221.
    2. Banerjee, Simanti & Cason, Timothy N. & de Vries, Frans P. & Hanley, Nick, 2017. "Transaction costs, communication and spatial coordination in Payment for Ecosystem Services Schemes," Journal of Environmental Economics and Management, Elsevier, vol. 83(C), pages 68-89.
    3. Charness, Gary & Gneezy, Uri & Kuhn, Michael A., 2012. "Experimental methods: Between-subject and within-subject design," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 1-8.
    4. Simanti Banerjee & Frans P. de Vries & Nick Hanley & Daan P. van Soest, 2014. "The Impact of Information Provision on Agglomeration Bonus Performance: An Experimental Study on Local Networks," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(4), pages 1009-1029.
    5. Simon Gächter & Elke Renner, 2010. "The effects of (incentivized) belief elicitation in public goods experiments," Experimental Economics, Springer;Economic Science Association, vol. 13(3), pages 364-377, September.
    6. Parkhurst, Gregory M. & Shogren, Jason F. & Bastian, Chris & Kivi, Paul & Donner, Jennifer & Smith, Rodney B. W., 2002. "Agglomeration bonus: an incentive mechanism to reunite fragmented habitat for biodiversity conservation," Ecological Economics, Elsevier, vol. 41(2), pages 305-328, May.
    7. Urs Fischbacher & Simon Gachter, 2010. "Social Preferences, Beliefs, and the Dynamics of Free Riding in Public Goods Experiments," American Economic Review, American Economic Association, vol. 100(1), pages 541-556, March.
    8. Yann Clough & Vijesh V. Krishna & Marife D. Corre & Kevin Darras & Lisa H. Denmead & Ana Meijide & Stefan Moser & Oliver Musshoff & Stefanie Steinebach & Edzo Veldkamp & Kara Allen & Andrew D. Barnes , 2016. "Land-use choices follow profitability at the expense of ecological functions in Indonesian smallholder landscapes," Nature Communications, Nature, vol. 7(1), pages 1-12, December.
    9. Rommel, Jens & Anggraini, Eva, 2018. "Spatially explicit framed field experiments on ecosystem services governance," Ecosystem Services, Elsevier, vol. 34(PB), pages 201-205.
    10. repec:feb:artefa:00031 is not listed on IDEAS
    11. Goldman, Rebecca L. & Thompson, Barton H. & Daily, Gretchen C., 2007. "Institutional incentives for managing the landscape: Inducing cooperation for the production of ecosystem services," Ecological Economics, Elsevier, vol. 64(2), pages 333-343, December.
    12. Börner, Jan & Baylis, Kathy & Corbera, Esteve & Ezzine-de-Blas, Driss & Honey-Rosés, Jordi & Persson, U. Martin & Wunder, Sven, 2017. "The Effectiveness of Payments for Environmental Services," World Development, Elsevier, vol. 96(C), pages 359-374.
    13. Drechsler, Martin & Wätzold, Frank & Johst, Karin & Shogren, Jason F., 2010. "An agglomeration payment for cost-effective biodiversity conservation in spatially structured landscapes," Resource and Energy Economics, Elsevier, vol. 32(2), pages 261-275, April.
    14. Bou Dib, Jonida & Krishna, Vijesh V. & Alamsyah, Zulkifli & Qaim, Matin, 2018. "Land-use change and livelihoods of non-farm households: The role of income from employment in oil palm and rubber in rural Indonesia," Land Use Policy, Elsevier, vol. 76(C), pages 828-838.
    15. Laure Kuhfuss & Raphaële Préget & Sophie Thoyer & Frans P. de Vries & Nick Hanley, 2017. "Nudging Participation and Spatial Agglomeration in Payment for Environmental Service Schemes," Discussion Papers in Environment and Development Economics 2017-11, University of St. Andrews, School of Geography and Sustainable Development.
    16. Narloch, Ulf & Pascual, Unai & Drucker, Adam G., 2012. "Collective Action Dynamics under External Rewards: Experimental Insights from Andean Farming Communities," World Development, Elsevier, vol. 40(10), pages 2096-2107.
    17. Zhaoyang Liu & Jintao Xu & Xiaojun Yang & Qin Tu & Nick Hanley & Andreas Kontoleon, 2019. "Performance of Agglomeration Bonuses in Conservation Auctions: Lessons from a Framed Field Experiment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(3), pages 843-869, July.
    18. Spiller, Jörg & Bolle, Friedel, 2017. "Experimental investigations of binary threshold public good games," Discussion Papers 393, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    19. R. Isaac & David Schmidtz & James Walker, 1989. "The assurance problem in a laboratory market," Public Choice, Springer, vol. 62(3), pages 217-236, September.
    20. van de Kragt, Alphons J. C. & Orbell, John M. & Dawes, Robyn M., 1983. "The Minimal Contributing Set as a Solution to Public Goods Problems," American Political Science Review, Cambridge University Press, vol. 77(1), pages 112-122, March.
    21. Vijesh Krishna & Michael Euler & Hermanto Siregar & Matin Qaim, 2017. "Differential livelihood impacts of oil palm expansion in Indonesia," Agricultural Economics, International Association of Agricultural Economists, vol. 48(5), pages 639-653, September.
    22. Simanti Banerjee, 2018. "Improving Spatial Coordination Rates under the Agglomeration Bonus Scheme: A Laboratory Experiment with a Pecuniary and a Non-Pecuniary Mechanism (NUDGE)," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(1), pages 172-197.
    23. Ferré, Marie & Engel, Stefanie & Gsottbauer, Elisabeth, 2018. "Which Agglomeration Payment for a Sustainable Management of Organic Soils in Switzerland? – An Experiment Accounting for Farmers' Cost Heterogeneity," Ecological Economics, Elsevier, vol. 150(C), pages 24-33.
    24. Wätzold, Frank & Drechsler, Martin, 2014. "Agglomeration payment, agglomeration bonus or homogeneous payment?," Resource and Energy Economics, Elsevier, vol. 37(C), pages 85-101.
    25. Roldan Muradian & Murat Arsel & Lorenzo Pellegrini & Fikret Adaman & Bernardo Aguilar & Bina Agarwal & Esteve Corbera & Driss Ezzine de Blas & Joshua Farley & Géraldine Froger & Eduardo Garcia-Frapoll, 2013. "Payments for ecosystem services and the fatal attraction of win-win solutions," Post-Print hal-03067404, HAL.
    26. Juan-Camilo Cardenas & T. K. Ahn & Elinor Ostrom, 2004. "Communication and Co-operation in a Common-Pool Resource Dilemma: A Field Experiment," Palgrave Macmillan Books, in: Steffen Huck (ed.), Advances in Understanding Strategic Behaviour, chapter 12, pages 258-286, Palgrave Macmillan.
    27. Jelsma, Idsert & Schoneveld, G.C. & Zoomers, Annelies & van Westen, A.C.M., 2017. "Unpacking Indonesia’s independent oil palm smallholders: An actor-disaggregated approach to identifying environmental and social performance challenges," Land Use Policy, Elsevier, vol. 69(C), pages 281-297.
    28. Midler, Estelle & Pascual, Unai & Drucker, Adam G. & Narloch, Ulf & Soto, José Luis, 2015. "Unraveling the effects of payments for ecosystem services on motivations for collective action," Ecological Economics, Elsevier, vol. 120(C), pages 394-405.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Santiago Izquierdo-Tort & Seema Jayachandran & Santiago Saavedra, 2024. "Redesigning payments for ecosystem services to increase cost-effectiveness," Nature Communications, Nature, vol. 15(1), pages 1-11, December.
    2. Dalheimer, Bernhard & Parikoglou, Iordanis & Brambach, Fabian & Yanita, Mirawati & Kreft, Holger & Brümmer, Bernhard, 2024. "On the palm oil-biodiversity trade-off: Environmental performance of smallholder producers," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shimada, Hideki, 2020. "Do monetary rewards for spatial coordination enhance participation in a forest incentive program?," Ecological Economics, Elsevier, vol. 177(C).
    2. Nguyen, Chi & Latacz-Lohmann, Uwe & Hanley, Nick & Schilizzi, Steven & Iftekhar, Sayed, 2022. "Spatial Coordination Incentives for landscape-scale environmental management: A systematic review," Land Use Policy, Elsevier, vol. 114(C).
    3. Nyanghura, Qambemeda M. & Biber-Freudenberger, Lisa & Börner, Jan, 2024. "Incentives for biodiversity conservation under asymmetric land ownership," Ecological Economics, Elsevier, vol. 219(C).
    4. Huber, Robert & Zabel, Astrid & Schleiffer, Mirjam & Vroege, Willemijn & Brändle, Julia M. & Finger, Robert, 2021. "Conservation Costs Drive Enrolment in Agglomeration Bonus Scheme," Ecological Economics, Elsevier, vol. 186(C).
    5. Kuhfuss, Laure & Préget, Raphaële & Thoyer, Sophie & de Vries, Frans P. & Hanley, Nick, 2022. "Enhancing spatial coordination in payment for ecosystem services schemes with non-pecuniary preferences," Ecological Economics, Elsevier, vol. 192(C).
    6. Panchalingam, Thadchaigeni & Jones Ritten, Chian & Shogren, Jason F. & Ehmke, Mariah D. & Bastian, Christopher T. & Parkhurst, Gregory M., 2019. "Adding realism to the Agglomeration Bonus: How endogenous land returns affect habitat fragmentation," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    7. Villamayor-Tomas, Sergio & Sagebiel, Julian & Rommel, Jens & Olschewski, Roland, 2021. "Types of collective action problems and farmers’ willingness to accept agri-environmental schemes in Switzerland," Ecosystem Services, Elsevier, vol. 50(C).
    8. Ferré, Marie & Engel, Stefanie & Gsottbauer, Elisabeth, 2022. "Incentivizing coordination in the adoption of sustainable land use when costs are heterogeneous: An economic experiment," Land Use Policy, Elsevier, vol. 123(C).
    9. Matteo Zavalloni & Meri Raggi & Davide Viaggi, 2016. "Assessing Collective Measures in Rural Policy: The Effect of Minimum Participation Rules on the Distribution of Benefits from Irrigation Infrastructure," Sustainability, MDPI, vol. 9(1), pages 1-19, December.
    10. Gee, Laura K. & Schreck, Michael J., 2018. "Do beliefs about peers matter for donation matching? Experiments in the field and laboratory," Games and Economic Behavior, Elsevier, vol. 107(C), pages 282-297.
    11. François Bareille & Matteo Zavalloni & Davide Viaggi, 2023. "Agglomeration bonus and endogenous group formation," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(1), pages 76-98, January.
    12. Drechsler, Martin, 2023. "Ecological and economic trade-offs between amount and spatial aggregation of conservation and the cost-effective design of coordination incentives," Ecological Economics, Elsevier, vol. 213(C).
    13. Gregory M. Parkhurst & Jason F. Shogren & Thomas Crocker, 2016. "Tradable Set-Aside Requirements (TSARs): Conserving Spatially Dependent Environmental Amenities," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(4), pages 719-744, April.
    14. Moros, Lina & Vélez, María Alejandra & Corbera, Esteve, 2019. "Payments for Ecosystem Services and Motivational Crowding in Colombia's Amazon Piedmont," Ecological Economics, Elsevier, vol. 156(C), pages 468-488.
    15. Hecker, Lutz Philip & Sturm, Astrid & Querhammer, Lisa & Wätzold, Frank, 2024. "Cost-effectiveness of state-dependent versus state-independent agri-environment schemes for biodiversity conservation," Ecological Economics, Elsevier, vol. 217(C).
    16. Midler, Estelle & Pascual, Unai & Drucker, Adam G. & Narloch, Ulf & Soto, José Luis, 2015. "Unraveling the effects of payments for ecosystem services on motivations for collective action," Ecological Economics, Elsevier, vol. 120(C), pages 394-405.
    17. Gregory Smith & Brett Day & Amy Binner, 2019. "Multiple-Purchaser Payments for Ecosystem Services: An Exploration Using Spatial Simulation Modelling," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(1), pages 421-447, September.
    18. Leah H. Palm-Forster & Paul J. Ferraro & Nicholas Janusch & Christian A. Vossler & Kent D. Messer, 2019. "Behavioral and Experimental Agri-Environmental Research: Methodological Challenges, Literature Gaps, and Recommendations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(3), pages 719-742, July.
    19. Zhaoyang Liu & Jintao Xu & Xiaojun Yang & Qin Tu & Nick Hanley & Andreas Kontoleon, 2019. "Performance of Agglomeration Bonuses in Conservation Auctions: Lessons from a Framed Field Experiment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(3), pages 843-869, July.
    20. Marie Ferré & Stefanie Engel & Elisabeth Gsottbauer, 2023. "External validity of economic experiments on Agri‐environmental scheme design," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 661-685, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:193:y:2022:i:c:s0921800921003785. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.