Paying for Environmental Services: An analysis of participation in Costa Rica's PSA Program

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Great Britain: Elsevier

Summary: Costa Rica has long been a leader among developing countries in the design of and experimentation with innovative environmental programs. Since 1997, Costa Rica's "Pagos de Servicios Ambientales" (Payments for Environmental Services) Program has provided payments to more than 4,400 farmers and forest owners for reforestation, forest conservation, and sustainable forest management activities. Econometric analysis of a survey of farmers and forest owners, including both PSA participants and nonparticipants, shows that farm size, human capital and household economic factors, and information variables significantly influence participation in PSA program alternatives. Large farmers and forest owners are disproportionately represented among program participants.

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Economic analyses, Payments for environmental services, Forest management, Sustainable forestry, Reforestation, Costa Rica, Pagos por Servicios Ambientales (PSA), Forest conservation, Sustainable forest management, Environmental payments, Program participation, Conservation programs, Central america, Market-based incentives, Ecosystem Farm/Enterprise Scale
World Development 33(2): 255-272