The profitability of forest protection versus logging and the role of payments for environmental services (PES) in the Reserva Forestal Golfo Dulce, Costa Rica

Abstract

This article analyzes the profitability of protecting forests with PES (payments for environmental services) versus the profitability of logging in the Reserva Forestal Golfo Dulce, Costa Rica, comparing data from 1999 and 2005. For landowners whose priority was profit maximization, logging was the better option in both years. To ensure protection of critical forest areas, the payment rates, length of award and structure of disbursement must be adapted to make forest protection a desirable alternative to logging.