Implementing REDD: A Spatial Nash Equilibrium Model and Community-level Payment Sharing in Tanzania
REDD – Reducing Emissions from Deforestation and Forest Degradation – programs provide payments, as in other PES programs, to slow forest use and conversion in low income countries. In many such countries, incomplete forest property rights and management institutions complicate the implementation of REDD. This presentation describes a spatial Nash equilibrium model depicting forest extraction behavior of multiple villagers in response to REDD programs. The results demonstrate how identical villagers make different extraction decisions; the differences between implementing REDD as locations of forests with leakage or as REDD landscapes with spatial reactions internalized; and outcomes during transitions and eventual steady states. This presentation also describes the common practice of implementing REDD through payments to communities rather than to individuals, with reference to observations from a multi-village REDD pilot in Tanzania.