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2014-05-18 | EfD Discussion Paper

Payment Types and Participation in Payment for Ecosystem Services Programs: Stated Preferences of Landowners

Nordén, Anna. 2014. “Payment Types and Participation in Payment for Ecosystem Services Programs: Stated Preferences of Landowners.” EfD Discussion Paper Series EfD DP 14-11.
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Because the effectiveness of payment for ecosystem services (PES) programs depends on landowners’ engagement, understanding the relationship between the type of payment and participation is a key issue. This paper reports on a choice experiment that quantifies landowners’ preferences for cash and educational in-kind payment. The main results indicate a positive correlation between participation in a PES contract and the magnitude of the cash payment, while participation seems uncorrelated with the magnitude of the educational in-kind payment. In addition, we investigate the mix of payment types and heterogeneity in preferences, which can help policymakers design strategies to increase participation.