Brazil has committed to reducing deforestation in the Amazon and has identified target goals for 2020. A variety of environmental policies and tools are used to reduce deforestation in the region, including payments for ecosystems services (PES). This report analyzes whether payments for ecosystem services are a viable option for supporting conservation and socio-economic goals in the Amazon. PES schemes provide economic incentives in exchange for meeting an environmental goal. They have been relatively successful in developed countries but have had limited applications or success in developing contexts. This report identifies the agents and activities that drive deforestation in the Brazilian Amazon and determines which of these may be suitable for PES applications. It also provides a framework for analyzing current PES schemes in order to draw out best practices and lessons learned which may be applied to future program. PES schemes do have a role to play as one of the tools used in addressing deforestation in the Amazon. They can be cheaper than indirect approaches but do face some challenges in evaluation. Future PES applications may benefit from the lessons learned in the early applications of these programs. / text

In recent decades, the concept of ecosystem services has deepened our appreciation of the myriad benefits provided by ecosystems, and the risks to human societies posed by ecosystem degradation. There is a growing realisation that problems traditionally considered to be outside the environmental policy arena are in truth strongly connected to the environment: ecosystems underlie issues spanning climate, energy, food, water, urban planning, human health, economic development, social justice, and national security. Payments for ecosystem services (PES) create positive financial incentives for the protection and restoration of ecosystems, and represent one way to better represent the value of ecosystem services across a range of sectors. PES schemes are gaining traction in climate mitigation and biodiversity protection strategies, and most of all in the water sector. PES is complementing traditional approaches to water management and helping to address deteriorating water quality, declining water flows, and flooding. This thesis takes a legal perspective, examining the role of legal frameworks in the design and administration of PES. It focuses on PES aimed at protecting freshwater ecosystem services, and considers how legal frameworks can incorporate PES into strategies for drinking water provision. It examines an emerging body of law relating directly to PES, and provides an opportunity to consider some of the leading examples of the ES concept being reflected in law. It distinguishes three broad categories of legal frameworks that establish, regulate or enable PES. A comparative methodology is applied to an analysis of case studies of legal frameworks for PES from: Costa Rica, Ecuador, Peru, Colombia, New York, England and Ontario. This analysis draws out conclusions about how the law relates to key policy issues around ES and PES, and different approaches to developing legal frameworks to guide PES, depending on different contexts and policy objectives.

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A growing number of Payments for Ecosystem Services (PES) schemes are being implemented in developing and developed countries alike in order to effect some internalisation of environmental costs. In China schemes under the name of ‘eco-compensation’ are often considered to be similar to PES. Neither the term eco-compensation itself, nor the projects that are supposedly examples of eco-compensation have been subject to scrutiny. This thesis therefore aims to investigate eco-compensation in China, with particular emphasis on water-related programmes. The thesis begins with a comprehensive review of PES literature in order to establish the definition and essential characteristics of such schemes, and to enable an examination of how China’s eco-compensation differs from PES. The analysis of PES provides a framework for focusing on eco-compensation by examining voluntariness, project types, payment, actors, and scales. A broad-scale analysis of 19 Chinese schemes is then undertaken, and this reveals that eco-compensation projects predominantly involve government agents, often with different levels of government as service sellers and buyers; in China individual land users are only directly involved in a few cases. Literature suggests that PES schemes are not simply technical solutions, but are inherently political. Having undertaken this general survey, the political dimension of eco-compensation is then examined in two case studies in great detail, based on semi-structured interviews and project documents. The first case study is of the Xin’an River eco-compensation scheme in which an upstream provincial government is paid to protect water quality to benefit the downstream province. Drawing from studies of “scale”, this case explores the power relationships of central-provincial governments and intra-provincial governments in transboundary river water quality management, especially in the negotiation process of the eco-compensation scheme. It finds that the upstream government mobilises the concept of “eco-compensation” to persuade the downstream government to share the costs of protecting the river and to gain favourable terms in setting the water quality target, using the narrative of “climate change”. The central government adopts a tough stance on the issue of environment protection by the upstream government by setting water quality targets and by introducing basin management planning. This case suggests that eco-compensation is shaped by struggles and conflicts among different actors concerning their strategies in defining eco-compensation rules, and that eco-compensation can also reconfigure power dynamics among these actors. The second case study is of the Miyun Reservoir watershed scheme, in which farmers in the upstream of the contributing watersheds are paid to convert from growing paddy rice to less water-intensive crops, and to reduce fertiliser use. The declared purpose is to increase the water supply to Beijing city, and improve water quality. Applying a political ecology approach, the case examines the history of water provision to China’s capital city, showing that Beijing has been extracting water from its territory and beyond by using its political power. This eco-compensation scheme is just a part of this story. The case also shows that the eco-compensation is justified by framing the upstream agricultural water consumption as the cause of decreasing water flow, while ignoring that large-scale afforestation has significantly contributed to water shortages through the excessive consumption of water. Meanwhile, Beijing has ignored its own huge environmental impact on water quality. This case provides useful insights into how eco-compensation is shaped and framed according to certain priorities and interests, and that it can lead to control over access to water resources amongst the less powerful farmers in order to support water uses in the politically-dominant urban centre. This thesis suggests that although eco-compensation in some instances can be similar to PES, more often than not it is a mechanism used to adjust the relationships between different governments. It includes both incentive-based and regulatory components. That makes it a potentially effective arrangement for river basin water quality management, in spite of contested negotiations. But caution must be exercised, as it can also be used under the market logic by powerful actors to control water resources.

Environmental degradation is threatening the provision of ecosystem services (IPBES, 2019). In an attempt to reverse this degradation trend, the use of economic incentives has increasingly gained prominence in environmental policy. In particular, payments for ecosystem services (PES), a type of economic incentive in which ecosystem services providers voluntarily receive a payment in exchange for the provision of ecosystem services, has increasingly gained relevance worldwide (Salzman et al., 2018). PES aim to enhance environmental conservation by altering the economic costs or benefits associated with targeted pro-environmental actions. However, a large amount of empirical evidence shows that PES, like other economic incentives, could potentially crowd out (or crowd in) intrinsic motivations for environmental conservation, which may sometimes translate into unexpected undesirable overall effects (for reviews, see Bowles and Polania-Reyes, 2012; Rode et al., 2015). Up to date, the conditions under which PES, and economic incentives in general, induce such motivational crowding effects are still not fully understood. In analyzing these effects, economic theory has often taken for granted non-monetary factors of economic incentives because they do not involve changes in prices or incomes. However, experimental evidence show that such factors could be relevant to preventing crowding-out effects or even creating crowding-in effects (e.g., see Ariely et al., 2009; Heyman and Ariely, 2004). In the context of PES, a large proportion of the experimental literature has focused on studying the effect of design features related to the monetary elements of these programs (e.g., Kerr et al., 2012; Kolinjivadi et al., 2019; Midler et al., 2015; Moros et al., 2019; Narloch et al., 2012), while fewer experimental studies have focused on non-monetary factors such as the degree of participation in the design or implementation process (e.g., Jack, 2009; Moros et al., 2019; Vollan, 2008). The present thesis contributes to this line of literature by examining whether PES could be more or less effective when specific non-monetary factors are adjusted in PES design or implementation. This thesis comprises an introductory chapter (Chapter 1) and a concluding chapter (Chapter 5) that serve as an overview of the thesis, together with three research articles (Chapters 2, 3 and 4). In each of the research articles belonging to this thesis, a specific non-monetary factor in the design or implementation context of PES is analyzed. Prior versions of the research articles in chapters 2-4 have been published as working papers on SSRN. Their content is briefly summarized below. Chapter 2 is entitled “Beyond a Market Discourse: Is Framing a Solution to Avoid Motivational Crowding-Out in Payments for Ecosystem Services?” and is co-authored by S. Engel and E. Midler. The goal of this article is to examine the role of the framing of a PES policy in preventing motivational crowding effects. In particular, it focusses on the short- and long-term effects of two dimensions of framing on: 1) using different terms to denote the payment, and 2) emphasizing different types of ecosystem services obtained from nature to motivate its conservation. This article analyses this topic with a lab-in-the-field experiment conducted with 157 farmers from a Colombian municipality. The findings of this article suggest that the framing of a policy could be a rather inexpensive tool to mitigate motivational crowding effects. In particular, a framing that acknowledges forest conservation as an achievement and a framing that emphasizes the cultural ecosystem services obtained from forest results in better conservation outcomes relative to a control framing. Chapter 3 is entitled “Who is Benefiting Downstream? Experimental Evidence on the Relevance of Upstream-Downstream Geographic Distance for Water Provision.” and is co-authored by S. Engel, E. Midler and T. Vorlaufer. The goal of this article is to study the relevance of the social distance between ecosystem service providers and beneficiaries for the short- and long-term motivational crowding effects of a PES policy. This article analyses this topic with a lab-in-the-field experiment in which the salience of social identity is defined by the real geographical distance between ecosystem service providers and beneficiaries, rather than being artificially induced. In particular, the experiment involves 60 rural farmers from a Colombian municipality, whose water provision decisions affected passive downstream beneficiaries in either the same municipality or the capital city of Bogotá. The findings suggest that although sharing a closer place identity with downstream beneficiaries is relevant to determine baseline water provision, it does not affect average motivational crowding effects in the short and long term. Nonetheless, predictions from the econometric analysis of the heterogeneous treatment effects suggest that emphasizing the benefits provided to people with whom upstream providers feel more socially identified could mitigate long-term crowding-out effects on providers with weak levels of place identification, without compromising the short-term effectiveness on farmers with a strong place identity and already high provisioning levels. Therefore, in the absence of a well-defined group of downstream beneficiaries financing a PES program, it could be more effective to emphasize local benefits, rather than the general benefits to society. Chapter 4 is entitled “Behavioral Spillovers from Mixing Conservation Policies in Neighboring Areas: An Experimental Analysis on Fairness Perceptions toward Unequal Policies.” and is co-authored by S. Engel and E. Midler. The goal of this article is to analyze the impact of fairness concerns on the effectiveness of a policy that is implemented in an unequal institutional context. In particular, it compares the effectiveness of implementing a specific economic incentive when a monetary reward is being implemented in a neighboring area, to the effectiveness of implementing the same economic incentive over the entire area. This article analyses this topic with a lab-in-the-field experiment conducted with 276 farmers from a Colombian municipality. In particular, the treatment recreated three institutional contexts: 1) a high priority area where PES are implemented next to a low priority area that is excluded from PES, 2) a protected area with land-use restrictions surrounded by a buffer area where PES are implemented, and 3) a protected area where PES are implemented on top of land-use restrictions, surrounded by a buffer area with only PES. Surprisingly, the findings show that fairness concerns do not increase with the level of inequality between neighbors. Although PES exclusion and simultaneously implementing PES inside and outside a protected area tend to increase fairness concerns and reduce forest conservation relative to the control groups, implementing PES only in the buffer area of a protected area decreases fairness concerns and increases forest conservation by those within the protected area, even after the policies are removed. Overall, this article stresses the relevance of considering the institutional context and context-specific fairness perceptions as a relevant factor when defining the targeting criteria for the implementation of environmental policies.

Payments for ecosystem services (PES), or conservation incentives, are an increasingly popular approach to encouraging natural resources conservation on private lands. The goal of PES approaches is to motivate conservation by private landowners that would not otherwise take place by providing an economic incentive. To achieve this goal, incentive programs must be available to landowners who can provide the desired services; supportive policy structures must be in place; landowners must be willing to participate as sellers of ecosystem services; and the program itself must have an institutional structure that effectively regulates the production, sale, and maintenance of targeted ecosystem services. This dissertation uses a combination of case study and comparative research methods to develop new knowledge and tools for assessing each of these necessary conditions for success. The potential development of an incentive program to conserve habitat for endangered jaguars in southern Arizona and southwestern New Mexico is used as a case study to understand the attitudes of ranchers toward participation in PES programs and related policies and regulations. Results show that ranchers have strong intrinsic conservation motivations unrelated to economic incentives, coupled with significant concerns about the impacts of government regulations that could accompany participation in a PES program. Comparative research of the institutional structures of existing PES programs is carried out using the Institutional Analysis and Development framework. Focusing on water quality trading, one of the most common types of PES program, a classification system for PES program institutional arrangements is developed and the utility of the classification system for analyzing institutional diversity is demonstrated. Together, the case study and comparative research provide a means of linking empirical assessment of PES governance models with the preferences of targeted participants, increasing the likelihood of successful conservation outcomes.

abstract: Environmental agencies often want to accomplish additional objectives beyond their central environmental protection objective. This is laudable; however it begets a need for understanding the additional challenges and trade-offs involved in doing so. The goal of this thesis is to examine the trade-offs involved in two such cases that have received considerable attention recently. The two cases I examine are (1) the protection of multiple environmental goods (e.g., bundles of ecosystem services); and (2) the use of payments for ecosystem services as a poverty reduction mechanism. In the first case (chapter 2), I build a model based on the fact that efforts to protect one environmental good often increase or decrease the levels of other environmental goods, what I refer to as "cobenefits" and "disbenefits" respectively. There is often a desire to increase the cobenefits of environmental protection efforts in order to synergize across conservation efforts; and there is also a desire to decrease disbenefits because they are seen as negative externalities of protection efforts. I show that as a result of reciprocal externalities between environmental protection efforts, environmental agencies likely have a disincentive to create cobenefits, but may actually have an incentive to decrease disbenefits. In the second case (chapter 3), I model an environmental agency that wants to increase environmental protection, but would also like to reduce poverty. The model indicates that in theory, the trade-offs between these two goals may depend on relevant parameters of the system, particularly the ratio of the price of monitoring to participant's compliance cost. I show that when the ratio of monitoring costs to compliance cost is higher, trade-offs between environmental protection and poverty reduction are likely to be smaller. And when the ratio of monitoring costs to compliance costs is lower, trade-offs are likely to be larger. This thesis contributes to a deeper understanding of the trade-offs faced by environmental agencies that want to pursue secondary objectives of protecting additional environmental goods or reducing poverty. / Dissertation/Thesis / M.S. Biology 2012

International efforts to promote REDD+ (reducing emissions from deforestation and forest degradation, and the role of conservation, sustainable management of forests and enhancement of forest-carbon stocks) have enjoyed widespread support in climate negotiations. While proponents of this ‘payments for ecosystem services’ approach proclaim win-win benefits, others critique this commodification of forest carbon for contributing to social and environmental injustices that will undermine conservation and development in the longer-term. In this dissertation I respond to these concerns by critically examining how REDD+ initiatives emerge in the context of Lindi Region, Tanzania. I specifically investigate how REDD+ initiatives interact with local livelihood practices, local forest governance and the drivers of land use in order to interrogate the mechanism’s contribution to local development. I conducted ethnographic fieldwork in two villages, both characterised by relatively large forest areas and ‘shifting cultivation’, where different REDD+ projects are underway. In total I stayed in Tanzania for 11 months and applied qualitative and quantitative methods that resulted in 116 recorded interviews, one focus group discussion, innumerable journal entries from ethnographic interviewing and participant observation, 118 household surveys and data from document analysis. Drawing on debates within international development and neoliberalisation of nature I conceptualise REDD+ initiatives as processes promoting ‘inclusive’ neoliberal conservation. In doing so I point at the inherent contradictions of this mechanism that aims to combine a neoliberal conservation logic with inclusive development objectives. I empirically examine local livelihood practices to question popular notions of land use and argue that REDD+ initiatives must grapple with poverty, intra-village inequality and villagers’ dependence on land for crop production to contribute to inclusive economic development. I follow up on this argument by discussing the importance of material and discursive effects of REDD+ initiatives to the livelihoods of poor, middle income and wealthy households and to forest conservation. I then link these effects to an examination of how power and politics shape the implementation of REDD+ initiatives on the ground, specifically discussing the technically complex and politically contested process of territorialisation and the local practices of community-based forest management. I illustrate how seemingly technical REDD+ initiatives are inherently political, which gives them the potential to contribute to local empowerment. At the same time I question naïve assumptions over community conservation and good governance reforms by showing in detail how community-based forest management institutions are practiced on the ground and how this affects benefit distribution within the villages. My last empirical chapter examines how Conservation Agriculture is introduced in the villages as the best way to reconcile agricultural development with forest protection. I specifically discuss the role of social relations in shaping the dissemination and adoption of this new technology in rural Tanzania. Throughout this thesis I argue that local livelihood practices, power struggles and politics over land and people shape how REDD+ initiatives, as inherently contradictory processes of ‘inclusive’ neoliberal conservation, emerge on the ground and I empirically show what this means to different forest stakeholders.

The overarching question that this thesis sheds some light on is whether making PES more equitable increases the likelihood that they will be successful. The findings of the three empirical chapters suggest that policy-makers would do well to keep equity consideration in mind when designing PES. The first of these chapters is based on the results of a survey of dozens of PES in Latin America. The second and third chapters use a deliberative choice experiments approach to measure participant preferences towards different equity design characteristics of PES in an indigenous community in Colombia, where one of these programs is likely to be implemented in the near future.

<p>  </p> <p>The role of trust and risk tolerance has received renewed attention in the field of environmental conservation and management as scholars are increasingly interested in integrating various social, economic, political, cultural, and psychological understandings, concepts, and theories into environmental conservation and natural resource management. This dissertation has two foci. The first focus is on examining the role of trust in the development and maintenance of collaborative environmental conservation programs and factors influencing trust (Chapters 2 and 3) and the second focus is on examining drivers of risk tolerance in the context of human-wildlife conflict (Chapter 4). Specifically, Chapter 2 focuses on the development and maintenance of NGO-municipal collaborations in an incentive-based environmental conservation program in Bolivia, where an NGO coordinated with four municipal governments in the initiation and implementation of the Watershared program. With a particular focus on the role of trust, I examined how municipal and NGO staff interact to negotiate, fund, and develop Watershared, their motivations to initiate such partnerships, factors that influence the maintenance of such partnerships, and how staff within these organizations envision their future collaborations. I collected and analyzed data from 15 semi-structured interviews with municipal decision makers and conservation practitioners in the implementing NGO and data from participant observation of several Watershared events and NGO meetings, utilizing an integrated Institutional Analysis Design (IAD) framework. My results suggest that trust and interpersonal relationships built upon shared values and goals and the program history in the region were important factors shaping NGO-municipal collaborations. At the same time, my results show that the NGO and municipal partners had different visions of the future of the program, particularly who would be responsible for program funding and implementation, and different organizational capacities that may influence their abilities to maintain their collaborations over time. Together, these results demonstrate the importance of understanding local dynamics in developing and maintaining NGO-municipal collaborations, particularly the role of adaptability and interpersonal relationships and the challenges related to goal misalignments over time. In Chapter 3, I investigated trust of Watershared participants and non-participants towards various organizations and the collaborating partners of Watershared, particularly the forms of trust present and the factors influencing their trust. By collecting and analyzing data from 1,030 household surveys of Watershared participants and non-participants in 72 communities in the Department of Santa Cruz, Bolivia, my results suggest that factors influencing trust in NGOs vs municipal governments differed even as the type of trust held in both entities was the same. Specifically, that community embeddedness and program participation significantly influenced trust in NGOs while perceived fairness and equality within communities and experience of political instability influence program participants’ trust in local municipalities. Overall, these results demonstrate the utility of a multi-level trust lens in developing informed understandings of trust across organizations while highlighting opportunities for natural resource professionals to enhance trust across organizations. Finally, Chapter 4 of my dissertation moved away from research in Bolivia to examine risk tolerance and trust in a different context due to my strong interest in human-wildlife conflict. Specifically, this chapter focuses on determining the factors that drive tolerance in livestock producer-black vulture conflicts in the midwestern United States. By collecting and analyzing data from 222 surveys of livestock producer in Indiana and Kentucky, I examined the economic, psychological, and social drivers of tolerance of black vultures. The results show that economic cost (e.g., livestock loss) was not a significant factor influencing risk tolerance; rather, wildlife value orientations such as utilitarian or mutualist beliefs, previous experience with black vultures, and intangible costs (i.e., emotions associated with wildlife) were significant drivers of tolerance. This chapter highlights the importance of incorporating non-economic factors in both understanding tolerance and developing policies and programs that reduce human-wildlife conflict. Overall, my dissertation examined trust, collaboration, and risk tolerance in two distinct contexts. Together, my results demonstrate the importance of integrating understandings of trust and risk tolerance with other economic, social, and psychological theories in developing a holistic approach to promoting collaborative natural resource management to address increasingly complex environmental conservation challenges.</p> <p>  </p>