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Distributional risk in PES: Exploring the concept in the Payment for Environmental Forest Services program, Vietnam

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  • Duong, Ngoc T.B.
  • de Groot, Wouter T.

Abstract

The distribution of monetary benefits is a central element in PES schemes and arouses ‘distributional risk’ if felt as unjust by the beneficiaries. The paper defines the concept of distributional risk, proposes a framework surrounding the phenomenon and explores their utility in an analysis of distributional decisions in eight Vietnamese communities that participate in a national forest PES program. This program shares a distributional principle with many PES schemes worldwide, paying out on a per hectare basis, implying that the biggest forest owners get most. Up till now, the communities successfully counterbalance this consequence by asserting the village level as the de facto distributor, able to apply their own principles of justice and partially reframing the disbursements as remuneration for work done for the forest rather than forest ownership. We recommend to legally institutionalize this practice, reaping other advantages as well, such as reduced transaction cost.

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  • Duong, Ngoc T.B. & de Groot, Wouter T., 2018. "Distributional risk in PES: Exploring the concept in the Payment for Environmental Forest Services program, Vietnam," Forest Policy and Economics, Elsevier, vol. 92(C), pages 22-32.
    • Handle: RePEc:eee:forpol:v:92:y:2018:i:c:p:22-32
    DOI: 10.1016/j.forpol.2018.03.008
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    Cited by:

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    2. Nyanghura, Qambemeda M. & Biber-Freudenberger, Lisa & Börner, Jan, 2024. "Incentives for biodiversity conservation under asymmetric land ownership," Ecological Economics, Elsevier, vol. 219(C).
    3. Pham, Van Truong & Roongtawanreongsri, Saowalak & Ho, Thong Quoc & Tran, Phuong Hanh Niekdam, 2021. "Can payments for forest environmental services help improve income and attitudes toward forest conservation? Household-level evaluation in the Central Highlands of Vietnam," Forest Policy and Economics, Elsevier, vol. 132(C).
    4. Jack Baynes & Geoff P. Lovell & John Herbohn, 2021. "Psychological outcomes of REDD + projects: evidence from country case studies," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 26(4), pages 1-27, April.
    5. Nguyen, Van Thi Hai & McElwee, Pamela & Le, Hue Thi Van & Nghiem, Tuyen & Vu, Huong Thi Dieu, 2022. "The challenges of collective PES: Insights from three community-based models in Vietnam," Ecosystem Services, Elsevier, vol. 56(C).
    6. Sharma, Kavita & Walters, Gretchen & Metzger, Marc J. & Ghazoul, Jaboury, 2023. "Glocal woodlands – The rescaling of forest governance in Scotland," Land Use Policy, Elsevier, vol. 126(C).
    7. Cochard, Roland & Gravey, Mathieu & Rasera, Luiz Gustavo & Mariethoz, Grégoire & Kull, Christian A., 2023. "The nature of a ‘forest transition’ in Thừa Thiên Huế Province, Central Vietnam – A study of land cover changes over five decades," Land Use Policy, Elsevier, vol. 134(C).
    8. Cochard, Roland & Nguyen, Van Hai Thi & Ngo, Dung Tri & Kull, Christian A., 2020. "Vietnam’s forest cover changes 2005–2016: Veering from transition to (yet more) transaction?," World Development, Elsevier, vol. 135(C).
    9. Gallemore, Caleb & Pham, Thu Thuy & Hamilton, Matthew & Munroe, Darla K., 2024. "Vietnam's Payments for Forest Ecosystem Services scheme's puzzling role in protecting longstanding forests as deforestation rates rise," Ecological Economics, Elsevier, vol. 217(C).

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