Do payments for environmental services affect forest cover? A farm-level evaluation from Costa Rica

Journal Article (Journal Article)

Payments for environmental services (PES) are popular despite little empirical evidence of their effectiveness. We estimate the impact of PES on forest cover in a region known for exemplary implementation of one of the best-known and longest-lived PES programs. Our evaluation design combines sampling that incorporates prematching, data from remote sensing and household surveys, and empirical methods that include partial identification with weak assumptions, difference-in-differences matching estimators, and tests of sensitivity to unobservable heterogeneity. PES in our study site increased participating farm forest cover by about 11% to 17% of the mean area under PES contract over eight years. (JEL Q57, Q58) © 2012 by the Board of Regents of the University of Wisconsin System.

Full Text

Duke Authors

Cited Authors

  • Arriagada, RA; Ferraro, PJ; Sills, EO; Pattanayak, SK; Cordero-Sancho, S

Published Date

  • May 1, 2012

Published In

Volume / Issue

  • 88 / 2

Start / End Page

  • 382 - 399

International Standard Serial Number (ISSN)

  • 0023-7639

Digital Object Identifier (DOI)

  • 10.3368/le.88.2.382

Citation Source

  • Scopus