Vorlaufer, Miriam, Marcela Ibanez, Bambang Juanda and Meike Wollni. 2017. “Conservation versus Equity: Can payments for environmental services achieve both?.” Land Economics 93:4: 667-688.
Download reference Doi:doi:10.3368/le.93.4.667
Based on a framed field experiment, we investigate the trade-off between conservation and equity in the use of payments for environmental services (PES). We compare the effects of two PES schemes that implicitly incorporate different distributive justice principles: a flat-rate payment per biophysical unit conserved and a redistributive payment based on the Rawls maxi-min distributional principle. The main findings indicate that the introduction of a redistributive scheme can function as a multipurpose instrument. Under the assumed condition that participants with lower endowments face higher opportunity costs of conservation, it realigns the income distribution in favor of low-endowed participants without compromising conservation outcomes. (JEL Q15, Q57)