Local Markets for Payments for Environmental Services: Can Small Rural Communities Self-Finance Watershed Protection?

Water Resources Management

Volumn 26, Issue 13, 2012, Pages 3689-3704

  Kaplowitz, Michael D ^a   Lupi, Frank ^a   Arreola, Oscar ^a  

^a MICHIGAN STATE UNIVERSITY   (United States)

Author keywords

Ecosystem services; Gravity fed drinking water system; Nonmarket valuation; PES; Water user group

Indexed keywords

DRINKING WATER SYSTEMS; ECOSYSTEM SERVICES; NON-MARKET VALUATION; PES; WATER USER GROUPS;

DEVELOPING COUNTRIES; ECONOMIC ANALYSIS; LANDFORMS; NATURAL RESOURCES MANAGEMENT; SURFACE WATERS; SURVEYS; WATERSHEDS;

ENVIRONMENTAL PROTECTION;

CONTINGENT VALUATION; DEVELOPING WORLD; DRINKING WATER; ECOSYSTEM SERVICE; ENVIRONMENTAL PROTECTION; LOW INCOME POPULATION; RURAL AREA; WATER MANAGEMENT; WATER RESOURCE; WATER USE; WATERSHED;

EID: 84866080190     PISSN: 09204741     EISSN: None     Source Type: Journal    
DOI: 10.1007/s11269-012-0097-y     Document Type: Article

References (71)

1. AAPOR (2008) Standard definitions: final dispositions of case codes and outcome rates for surveys, Vol. 2008, 5th edn. The American Association for Public Opinion Research (AAPOR), Lenexa.
2. Altaf MA, Hughes JA (1994) Measuring the demand for improved urban sanitation services: results of a contingent valuation study in Ouagadougou, Burkina Faso. Urban Stud 31(4): 1763-1776.
3. Araya R (2006) Encargado de cobros y estadísticas. Acueductos y alcantarillados, zona huetar atlantica (government statistician). Limon, Costa Rica.
4. Arreaga C, Bracamontes A (2001) Valoración económica del servicio ambiental hídrico de la subcuenca del río dos novillos, zona atlántica de costa rica, Trabajo de Graduación, Universidad EARTH, Guácimo, Costa Rica.
5. Asquith NM, Vargas MT, Wunder S (2008) Selling two environmental services: in-kind payments for bird habitat and watershed protection in Los Negros, Bolivia. Ecol Econ 65(4): 675-684.
6. Briscoe J, Furtado de Castro P, Griffin C, North J, Olsen O (1990) Toward equitable and sustainable rural water supplies: a contingent valuation study in Brazil. World Bank Econ Rev 4(2): 115-134.
7. Broadbent EN, Almeyda Zambrano AM, Dirzo R, Durham WH, Driscoll L, Gallagher P, Salters R, Schultz J, Colmenares A, Randolph SG (2012) The effect of land use change and ecotourism on biodiversity: a case study of Manuel Antonio, Costa Rica, from 1985 to 2008. Landsc Ecol 27: 731-744. doi: 10. 1007/s10980-012-9722-7.
8. Calvo JC (1990) Water-resources development in costa-rica 1970-2000. Hydrol Sci J-J Sci Hydrol 35(2): 185-196.
9. Cameron TA, Quiggin J (1994) Estimation using contingent valuation data from a "Dichotomous choice with follow-up" Questionnaire. J Environ Econ Manag 27: 218-234.
10. Carson RT (2000) Contingent valuation: a user's guide. Environ Sci Technol 34(8): 1413-1418.
11. Carson RT, Hanemann WM (2005) Contingent valuation. In: Mäler KG, Vincent JR (eds) Handbook of environmental economics: valuing environmental changes, vol 2. Elsevier, North-Holland.
12. Chichilinsky G, Heal G (1998) Economic returns form the biosphere. Nature 391: 629-630.
13. Choe K, Whittington D, Lauria DT (1996) The economic benefits of surface water quality improvements in developing countries: a case study of Davao, Philippines. Land Econ 72(4): 519-537.
14. Chomitz KM, Brenes E, Constantino L (1998) Financing environmental services: the Costa Rican experience and its implications. Sci Total Environ 240: 157-169.
15. Cuesta, T. 1999. Identificación de aspectos críticos y conflicto de uso de la tierra en la microcuenca dos novillos, Trabajo de Graduación, Universidad EARTH, Guácimo, Costa Rica.
16. Douglas EM, Wood S, Sebastian K, Vorosmarty CJ, Chomitz KM, Tomich TP (2007) Policy implications of a pan-tropic assessment of the simultaneous hydrological and biodiversity impacts of deforestation. Water Resour Manag 21: 211-232. doi: 10. 1007/s11269-006-9050-2.
17. Eisen-Hecht JI, Kramer RA (2002) A cost-benefit analysis of water quality protection in the Catawba Basin. J Am Water Resour Assoc 38(2): 453-465.
18. Engel S, Pagiola S, Wunder S (2008) Designing payments for environmental services in theory and practice: an overview of the issues. Ecol Econ 65: 663-674.
19. FAO (2004) Payment schemes for environmental services in watersheds. In Regional forum, third Latin American congress on watershed management. Arequipa, Food and Agriculture Organization of the United Nations (FAO), Peru.
20. FAO (2007) The State of food and agriculture: paying farmers for environmental services. FAO Agriculture Series No. 38. Food and Agriculture Organization of the United Nations (FAO), Rome.
21. Farley J, Costanza R (2010) Payments for ecosystem services: from local to global. Ecol Econ 69: 2060-2068.
22. Ferraro PJ, Kiss A (2002) Ecology-direct payments to conserve biodiversity. Science 298(5599): 1718-1719.
23. Fletcher R, Breitling J (2012) Market mechanism or subsidy in disguise? Governing payment for environmental services in Costa Rica. Geoforum 43: 402-411.
24. FONAFIFO (2000) El desarrollo del sistema de pago de servicios ambientales en costa rica. Fondo National de Financiamiento Forestal (FONAFIFO), San José.
25. Genius M, Hatzaki E, Kouromichelaki EM, Kouvakis G, Nikiforaki S, Tsagarakis KP (2008) Evaluating consumers' willingness to pay for improved potable water quality and quantity. Water Resour Manag 22(12): 1825-1834.
26. Griffin CC, Briscoe J, Singh B, Ramasubban R, Bhatia R (1995) Contingent valuation and actual behavior: predicting connections to new water systems in the State of Kerala, India. World Bank Econ Rev 9(3): 373-395.
27. Haab TC, McConnell KE (2002) Valuing environmental and natural resources: the econometrics of non-market valuation, New horizons in environmental economics: Edward Elgar Publishing.
28. Herrador D, Dimas L (2000) Payment for environmental services in El Salvador. Mt Res Dev 20(4): 306-309.
29. Hoehn JP, Krieger D (2000) Valuing water in a desert city: an economic analysis of infrastructure investments in Cairo, Egypt. J Water Res Plan Manag 126: 345-350.
30. Hoehn JP, Krieger D, Kaplowitz MD (1999) Estimating benefits of water and wastewater investments: residential demand in Cairo. Int Rev Comp Public Policy 11: 156-176.
31. Hoehn JP, Lupi F, Kaplowitz MD (2003) Untying a Lancasatrian Bundle: Ecosystem Valuation for Wetland Mitigation. Journal of Environmental Management 68(3): 263-272.
32. Johnson NL, Baltodano ME (2004) The economics of community watershed management: some evidence from Nicaragua. Ecol Econ 48: 57-71.
33. Kaimowitz D (2000) The political economy of environmental policy reform in Latin America. In: Frieden J, Pastor M, Tomz M (eds) Modern political economy and Latin America: theory and policy. Westview Press, Boulder.
34. Kaimowitz D (2004) Useful myths and intractable truths: the politics of the links between forests and water in Central America. In: Bonell M, Bruijnzeel LA (eds) Forests, water and people in the humid tropics: past, present, and future hydrological research for integrated land and water management. Cambridge University Press, Cambridge.
35. Kaplowitz MD, Lupi F, Hoehn JP (2004) Multiple-methods for developing and evaluating a stated preference survey to value wetland ecosystems. In: Presser S, Rothgeb JM, Couper MP, Lessler JT, Martin E, Martin J, Singer E (eds) Methods for testing and evaluating survey questionnaires. Wiley, Hoboken.
36. Kaplowitz MD, Ortega-Pacheco D, Lupi F (2008) Payment for environmental services and other institutions for protecting drinking water in Eastern Costa Rica. In: Mercuro N, Batie SS (eds) Alternative institutional structures. Routledge Press, London.
37. Kellon D (2006) Natural resource management in a Costa Rican watershed. Masters, Community, Agriculture, Recreation, and Resource Studies, Michigan State University, East Lansing.
38. Kerr J (2002) Watershed development, environmental services, and poverty alleviation in India. World Dev 30(8): 1387-1400.
39. Kontogianni A, Langford IH, Papandreou A, Skourtos MS (2003) Social preferences for improving water quality: an economic analysis of benefits from wastewater treatment. Water Resour Manag 17: 317-336.
40. Kosoy N, Corbera E, Brown K (2008) Participation in payments for ecosystem services: case studies from the Lacandon rainforest, Mexico. Geoforum 39(6): 2073-2083.
41. Lopez-Gunn E, Cortina L (2006) Is self-regulation a myth? Case study on Spanish groundwater user associations and the role of higher-level authorities. Hydrogeol J 14(3): 361-379.
42. MacDonald DH, Morrison MD, Barnes MB (2010) Willingness to pay and willingness to accept compensation for changes in urban water customer service standards. Water Resour Manag 24: 3145-3158. doi: 10. 1007/s11269-010-9599-7.
43. McAfee K, Shapiro E (2010) Payments for ecosystem services in Mexico: nature, neoliberalism, social movements, and the state. Ann Assoc Am Geogr 100(3): 579-599.
44. Marti{dotless}nez ML, Perez-Maqueo O, Vazquez G, Castillo-Campos G, Garci{dotless}a-Franco J, Mehltreter K, Equihua M, Landgrave R (2009) Effects of land use change on biodiversity and ecosystem services in tropical Montane cloud forests of Mexico. For Ecol Manage 258(9): 1856-1863.
45. Ortega-Pacheco DV, Lupi F, Kaplowitz MD (2009) Payment for environmental services: estimating demand within a tropical watershed. J Nat Resour Policy Res 1: 189-202.
46. Pagiola S (2002) Paying for water services in Central America: learning from costa rica. In: Pagiola S, Bishop J, Landell-Mills N (eds) Selling forest environmental services: market-based mechanisms for conservation and development. Earthscan, London.
47. Pagiola S, Bishop J, Landell-Mills N (2002) Selling forest environmental services: market-based mechanisms for conservation and development. Earthscan, London.
48. Pagiola S, Agostini P, Gobbi J, de Haan C, Ibrahim M, Murgueitio E, Ramirez E, Rosales M, Ruiz JP (2005a) Paying for biodiversity conservation services-experience in Colombia, Costa Rica, and Nicaragua. Mt Res Dev 25(3): 206-211.
49. Pagiola S, Arcenas A, Platais G (2005b) Can payments for environmental services help reduce poverty? An exploration of the issues and the evidence to date from Latin America. World Dev 33(2): 237-253.
50. Pattanayak SK, Kramer RA (2001) Pricing ecological services: willingness to pay for drought mitigation from watershed protection in eastern Indonesia. Water Resour Res 37(3): 771-778. doi: 10. 1029/2000WR900320.
51. Phumpiu P, Gustafsson JE (2009) When are partnerships a viable tool for development? Institutions and partnerships for water and sanitation service in Latin America. Water Resources Management 23(1): 19-38. doi: 10. 1007/s11269-008-9262-8.
52. Piper S (1998) Using contingent valuation and benefit transfer to evaluate water supply improvement benefits. J Am Water Resour Assoc 34(2): 311-320.
53. Porras I, Grieg-Gran M, Neves B (2008) All that glitters a review of payments for watershed services in developing countries. International Institute for Environmental and Development, London.
54. Postel SL, Thompson BH (2005) Watershed protection: capturing the benefits of nature's water supply services. Nat Res Forum 29: 98-108.
55. Roggiero A, Saucedo A (2001) Evaluación de la calidad natural del agua del río dos novillos y algunas observaciones sobre los sistemas de producción agropecuarios desarrollados en sus márgenes. La Argentina de Pocora, Guácimo, Limón, Costa Rica, Trabajo de Graduación, Universidad EARTH, Guácimo, Costa Rica.
56. Rollins K, Wistowsky W, Jay M (1997) Wilderness canoeing in Ontario: using cumulative results to update dichotomous choice contingent valuation offer amounts. Can J Agric Econ 45: 1-16.
57. Salzman J (2005) Creating markets for ecosystem services: notes from the field. NY Univ Law Rev 80(3): 870-961.
58. Sanchez-Azofeifa GA, Harriss RC, Storrier AL, De Camino-Beck T (2002) Water resources and regional land cover change in Costa Rica: impacts and economics. Int J Water Resour Dev 18(3): 409-424.
59. Shultz S, Soliz B (2007) Stakeholder willingness to pay for watershed restoration in rural Bolivia. J Am Water Resour Assoc 43(4): 947-956.
60. van der Zaag P (2007) Asymmetry and equity in water resources management; critical institutional issues for Southern Africa. Water Resour Manag 21: 1993-2004. doi: 10. 1007/s11269-006-9124-1.
61. van Hecken G, Bastiaensen J, Vásquez W (2012) The viability of local payments for watershed services: empirical evidence from Matiguás, Nicaragua. Ecol Econ 74: 169-176.
62. Vasquez W, Mozumder P, Hernandez-Arce J, Berrens R (2009) Willingness to pay for safe drinking water: evidence from Parral, Mexico. J Environ Manage 90: 3391-3400.
63. Wei Y, Davidson B, Chen D, White R, Li B, Zhang J (2007) Can contingent valuation be used to measure the in situ value of groundwater on the North China plain? Water Resour Manag 21: 1735-1749. doi: 10. 1007/s11269-006-9123-2.
64. Whittington D (1998) Administering contingent valuation surveys in developing countries. World Dev 26(1): 21-30.
65. Whittington D (2002) Improving the performance of contingent valuation studies in developing countries. Environ Resour Econ 22: 323-367.
66. Whittington D, Briscoe J, Mu X, Barron W (1990) Estimating the willingness to pay for water services in developing countries: a case study of the use of contingent valuation surveys in southern Haiti. Econ Dev Cult Chang 38.
67. Whittington D, Pattanayak SK, Yang JC, Bal Kumar KC (2002) Household demand for improved piped water services: evidence from Kathmandu, Nepal. Water Policy 4: 531-556.
68. World Bank. Water Demand Research Team (1993) The demand for water in rural areas: determinants and policy implications. World Bank Res Obs 8(1): 47-70.
69. World Bank (2000) Ecomarkets project: project appraisal document. World Bank, Washington.
70. Wunder S (2005) Payments for environmental services: some nuts and bolts. Center for International Forestry Research, Bogor.
71. Zbinden S, Lee DR (2005) Paying for environmental services: an analysis of participation in Costa Rica's PSA program. World Dev 33(2): 255-272.