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Payments for Environmental Services – Costa Rica

Payments for Environmental Services – Costa Rica. A working system. Source: Luis Gamez, 2001. Source: Luis Gamez, 2001. Determining Levels of Payment Based on the Opportunity Cost of Land Payment >= OCL. Grazing land is the major competitor to forest conservation

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Payments for Environmental Services – Costa Rica

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  1. Payments for Environmental Services – Costa Rica A working system

  2. Source: Luis Gamez, 2001

  3. Source: Luis Gamez, 2001

  4. Determining Levels of Payment Based on the Opportunity Cost of Land Payment >= OCL • Grazing land is the major competitor to forest conservation • What is the OCL for dairy and cattle ranching? • Measure ~ cost of rental 1 Ha. for pasture • Market value = acceptable income / Ha. of benefits foregone Source: Luis Gamez, 2001

  5. Modalities & Distribution of Payment (2001) Source: Luis Gamez, 2001

  6. Types of Forest Conservation Contracts Source: Luis Gamez, 2001

  7. Total Area and Number of Contracts by Modality and Year Source: Luis Gamez, 2001

  8. Case: Medium sized hydroelectric

  9. Decision Making and Adoption Adoption Issues with Examples from Central America

  10. Electric Cars • Do you think hybrid cars are a good idea? (compared to gas powered) Electric? • How many of you own an hybrid? • How many of you know someone who owns a hybrid gas/electric car? • Why don’t we have more electric cars?

  11. Innovation/Adoption

  12. Characteristics of an innovation • Relative advantage • Compatibility • Complexity • Trialability • Observability

  13. Requirements for adoption • Knowledge • What - existence ? • How to apply practice ? • Motivation • Recognized benefits • Acceptable level of risk • Compatible with farming system • Resources necessary • Land, labor and capital

  14. Process of Adoption • Knowledge of the innovation • Persuasion - interest • Decision - acceptance • Implementation - trial • Adoption - confirmation

  15. Adaptation - a parallel process • When trying a new system a farmer often makes changes in the system to meet his/her particular needs • Adaptation is important and often indicates changes we should make in our recommendations

  16. Adoption Model

  17. Decision making model with promotion

  18. Bio-physical factors • Site conditions • Soil • Climate • Species available • Site requirements • Productivity • Crop tree/forest interactions • Complementary or competitive

  19. Socio-cultural factors • Lack of tree planting/management tradition • Perception that trees require a long time to produce benefits • Tree management not considered a productive activity • Tradition of conflict between farmers and forest regulatory agencies

  20. Political-institutional factors • Permits and regulations for the harvest and transport of forest products • Land tenancy arrangements • Diminishing government support for extension activities • Land taxes

  21. Economic Factors • Markets for tree products • Little market development in past • Value of tree products increasing • Lack of price information • The market is an important motivation • Establishment costs of planting often prohibitive – obstacle to adoption

  22. Issues • Incentives • Are valuable to “jump start” • Provide a catalyst but not long term • Participation • What is the role of participation in adoption?

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