Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 591: Payment Types and Participation in Payment for Ecosystem Services Programs: Stated Preferences of Landowners

Anna Nordén ()
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Anna Nordén: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 Gothenburg, Sweden

Abstract: Because the effectiveness of payment for ecosystem services (PES) programs depends on landowners’ engagement, understanding the relationship between the type of payment and participation is a key issue. This paper reports on a choice experiment that quantifies landowners’ preferences for cash and educational in-kind payment. The main results indicate a positive correlation between participation in a PES contract and the magnitude of the cash payment, while participation seems uncorrelated with the magnitude of the educational inkind payment. In addition, we investigate the mix of payment types and heterogeneity in preferences, which can help policymakers design strategies to increase participation.

Keywords: payment for ecosystem services; cash payments; in-kind payments; stated preferences; land owners

JEL-codes: Q28; Q57

46 pages, April 2014

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