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Is the Distribution of Ecosystem Service Benefits Pro-Poor? Evidence from Water Purification by Forests in Thailand

Publication ,  Journal Article
Vincent, JR; Nabangchang, O; Shi, C
Published in: Water Economics and Policy
July 1, 2020

Forests are widely believed to provide a water purification service that reduces the cost of treating drinking water, but few empirical economic studies have investigated this service in developing countries, where deforestation rates and thus threats to the service tend to be higher than in developed countries. Even fewer studies have investigated the distribution of the benefits of this service, or any other regulating ecosystem service for that matter, in either developing or developed countries. Using quarterly panel data for 158 water utilities in Thailand during 2004-2014, we find robust evidence that forests significantly reduced the material cost of water treatment, but we find no evidence that the cost reductions were progressive in the sense of being larger in provinces with higher poverty rates. The economic justification for source water protection in Thailand appears to hinge purely on considerations of efficiency-does source water protection provide net benefits?-not on the distribution of those benefits between poorer and richer locations. Research in other countries is needed to determine if the absence of pro-poor distributional impacts of forest water purification is unique to Thailand or the norm and if interventions that enhance forest water purification significantly reduce poverty in locations served by treated drinking water systems.

Duke Scholars

Published In

Water Economics and Policy

DOI

EISSN

2382-6258

ISSN

2382-624X

Publication Date

July 1, 2020

Volume

6

Issue

3

Related Subject Headings

  • 4104 Environmental management
  • 3801 Applied economics
  • 1402 Applied Economics
  • 0502 Environmental Science and Management
 

Citation

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Vincent, J. R., Nabangchang, O., & Shi, C. (2020). Is the Distribution of Ecosystem Service Benefits Pro-Poor? Evidence from Water Purification by Forests in Thailand. Water Economics and Policy, 6(3). https://doi.org/10.1142/S2382624X20500058
Vincent, J. R., O. Nabangchang, and C. Shi. “Is the Distribution of Ecosystem Service Benefits Pro-Poor? Evidence from Water Purification by Forests in Thailand.” Water Economics and Policy 6, no. 3 (July 1, 2020). https://doi.org/10.1142/S2382624X20500058.
Vincent JR, Nabangchang O, Shi C. Is the Distribution of Ecosystem Service Benefits Pro-Poor? Evidence from Water Purification by Forests in Thailand. Water Economics and Policy. 2020 Jul 1;6(3).
Vincent, J. R., et al. “Is the Distribution of Ecosystem Service Benefits Pro-Poor? Evidence from Water Purification by Forests in Thailand.” Water Economics and Policy, vol. 6, no. 3, July 2020. Scopus, doi:10.1142/S2382624X20500058.
Vincent JR, Nabangchang O, Shi C. Is the Distribution of Ecosystem Service Benefits Pro-Poor? Evidence from Water Purification by Forests in Thailand. Water Economics and Policy. 2020 Jul 1;6(3).
Journal cover image

Published In

Water Economics and Policy

DOI

EISSN

2382-6258

ISSN

2382-624X

Publication Date

July 1, 2020

Volume

6

Issue

3

Related Subject Headings

  • 4104 Environmental management
  • 3801 Applied economics
  • 1402 Applied Economics
  • 0502 Environmental Science and Management