Scandinavian Working Papers in Economics

EfD Discussion Paper,
Environment for Development, University of Gothenburg

No 22-7: Ending Ecoservices Payments Does Not Crow Out Lab-in-the Field Forest Conservation

Lina Moros (), María Alejandro Vélez (), Alexander Pfaff () and Daniela Quintero ()
Additional contact information
Lina Moros: Universidad de los Andes, School of Management, Bogotá, Colombia.
María Alejandro Vélez: Los Andes University
Alexander Pfaff: Duke University
Daniela Quintero: Los Andes University

Abstract: Payment for ecosystem services (PES) programs are proliferating globally but not always with significant impact. Unlike protected areas (PAs), PES compensate suppliers of ecoservices, increasing local acceptance. Yet, some worry that PES could reduce conservation in the long run, if the introduction of financial incentives “crowds out” or diminishes prior conservation behavior. We implemented a decision experiment with farmers in rural Colombia to study the effects of temporary PES. We find no crowding out if a PES is introduced then ended. Contributions after PES fall back to pre-PES levels, at worst, and if anything, they are higher. Comparisons to controls without PES strengthen these findings, which can inform policy design.

Keywords: lab-in-the field experiment; pro-environmental behavior; payment for ecosystem services; incentives; Colombia

JEL-codes: Q01; Q52; Q57; Q58

Language: English

38 pages, May 10, 2022

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