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PDF
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Type:
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Working Paper |
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Author:
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Alix-Garcia, Jennifer; de Janvry, Alain; Sadoulet, Elisabeth |
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Date:
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2005 |
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Agency:
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Series:
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URI:
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https://hdl.handle.net/10535/5691
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Sector:
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Forestry |
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Region:
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Central America & Caribbean |
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Subject(s):
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conservation
environmental policy
simulations
rural development
environmental services
deforestation
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Abstract:
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"This paper discusses the gain in efficiency from including deforestation risk as a targeting criterion in payments for environmental services (PES) programs. We contrast two payment schemes that we simulate using data from Mexican common property forests: a flat payment scheme with a cap on allowable hectares, similar to the program implemented in several countries, and a payment that takes deforestation risk into account. We simulate the latter strategy both with and without a budget constraint. Using observed past deforestation, we find that while risk-targeted payments are far more efficient, flat payments are more egalitarian. We also consider the characteristics of communities receiving payments from both programs. We find that the risk-weighted scheme results in more, though smaller, payments to poor communities, and these payments are more efficient than those to non-poor ejidos. In the flat scheme, payments to poor and non-poor are equal, though they receive less of the budget than in the more efficient program."
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