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Payments for Environmental Services: A Peruvian Case Study

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  • Rojas Lara, Teresa

Abstract

Globally, land use changes and deforestation contribute with around 20% of the green house gases emissions. Payments for Environmental Services (PES) schemes constitute a way to cope with these problems and promote the conservation of natural resources using market-based incentives. Through empirical evidence from Peru, this study assesses the impact of payments for carbon reductions and analyzes factors which can contribute to the adoption of these projects. Household behavior is analyzed with a linear programming model. The preliminary results indicate that carbon payments would increase the income of the farmers, thus could contribute to increase the adoption of these projects.

Suggested Citation

  • Rojas Lara, Teresa, 2012. "Payments for Environmental Services: A Peruvian Case Study," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126807, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae12:126807
    DOI: 10.22004/ag.econ.126807
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    References listed on IDEAS

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    1. Engel, Stefanie & Pagiola, Stefano & Wunder, Sven, 2008. "Designing payments for environmental services in theory and practice: An overview of the issues," Ecological Economics, Elsevier, vol. 65(4), pages 663-674, May.
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    4. Cacho, Oscar J. & Marshall, Graham R. & Milne, Mary, 2003. "Smallholder agroforestry projects: Potential for carbon sequestration and poverty alleviation," ESA Working Papers 289093, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
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    6. World Bank, 2007. "Republic of Peru - Environmental Sustainability : A Key to Poverty Reduction in Peru," World Bank Publications - Reports 7761, The World Bank Group.
    7. Pagiola, Stefano & Arcenas, Agustin & Platais, Gunars, 2005. "Can Payments for Environmental Services Help Reduce Poverty? An Exploration of the Issues and the Evidence to Date from Latin America," World Development, Elsevier, vol. 33(2), pages 237-253, February.
    8. Corbera, Esteve & Soberanis, Carmen González & Brown, Katrina, 2009. "Institutional dimensions of Payments for Ecosystem Services: An analysis of Mexico's carbon forestry programme," Ecological Economics, Elsevier, vol. 68(3), pages 743-761, January.
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    Keywords

    Agricultural and Food Policy; Environmental Economics and Policy;

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