Environment Department Papers
52 items available
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These discussion papers are produced primarily by the Environment Department, on occasion jointly with other departments. Papers in this series are not formal publications of the World Bank. They are circulated to encourage thought and discussion. The use and citation of this paper should take this into account. The views expressed are those of the authors and should not be attributed to the World Bank.
Items in this collection
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Publication
Impacts of Conservation Incentives in Protected Areas: The Case of Bolsa Floresta, Brazil
(World Bank, Washington, DC, 2019-11)Incentive-based conservation is a promising approach to tropical forest conservation, including within multiple-use protected areas. Here we analyze the environmental impacts of Bolsa Floresta, a longstanding forest conservation program combining conditional household payments with livelihood-focused investments in 15 multiple-use reserves of Amazonas State, Brazil. We use grid-based data, nearest-neighbor matching, and panel data econometrics to compare forest-related program outcomes (deforestation, degradation, fires) with non-participating reserves. While post-treatment deforestation and degradation was negligible, this was already the case pre-treatment, since low-threat reserves had preferentially been targeted. We thus find only statistically insignificant additional conservation effects from implementation. No important heterogeneous treatment effects could be detected either. Our findings thus add to the growing evidence that spatial mis-targeting towards low-hanging fruits, that is disproportionally selecting low-threat forest conservation areas into programs, constitutes a prime cause for low additionality found in rigorous impact evaluations of incentive-based forest conservation initiatives. -
Publication
Assessing the Permanence of Land Use Change Induced by Payments for Environmental Services: Evidence from Nicaragua
(World Bank, Washington, DC, 2017-05)There have been few efforts to evaluate whether the positive land use changes induced by conservation interventions such as Payments for Environmental Services (PES) persist once the interventions end. Since gains achieved by conservation interventions may be lost upon termination of the program, even apparently successful interventions may not result in longterm conservation benefits, a problem known as that of permanence. This paper examines the permanence of land use changes induced by a short-term PES program implemented between 2003 and 2008 in Matiguas-Rio Blanco, Nicaragua. This PES program had been found to have a positive and highly significant impact on land use, and particularly on the adoption of silvopastoral practices. To assess the long-term permanence of these changes, participants were re-surveyed in 2012, four years after the last payment was made. We find that the land use changes that had been induced by PES were broadly sustained in intervening years, with minor differences across specific practices and sub-groups of participants. The patterns of change in the period after the PES program was completed help us understand the reasons for the program's success, and rule out alternative explanations for the program's success. Our results suggest that, at least in the case of productive land uses such as silvopastoral practices, PES programs can be effective at encouraging land owners to adopt environmentally beneficial land use practices and that the benefit will persist after payments cease. -
Publication
Do They Do As They Say?: Stated versus Revealed Preferences and Take Up in an Incentives for Conservation Program
(World Bank, Washington, DC, 2016-06)Use of conditional cash transfers has become widespread in development policy given their success in boosting health and education outcomes. Recently, conditional cash transfers are being used to promote pro-environmental behavior. While many of these Payments for Environment Services (PES) programs have been successful, it has been hypothesized that those with less favorable outcomes have been subject to low additionality, whereby landholders already conserving their land self-select into the program. Insights from the behavioral economics literature suggest that an external incentive, such as PES, has the potential to crowd in or crowd out individual behavior differentially across the initial distribution of intrinsic motivations (Frey, 1992). Thus, to increase the impact of PES, program administrators might gain from a better understanding of both the pre-existing motivations and existing baseline conservation behavior of potential participants. This paper contributes to the literature by disentangling and measuring intrinsic motivations, specifically: Pro-Environment, Pro-Social, Pro-Government, and Social Norms. Controlling for observable opportunity costs, we use these latent motivations to analyze behavioral determinants of take up for a conservation program in São Paulo, Brazil. The payments are an incentive to comply with the Brazil Forest Code. We find that Pro-Social and Pro-Environment landholders are both more likely to be conserving private land not under legal protection before the program is introduced, whereas only Pro-Social landholders are already conserving land under legal protection. With respect to enrollment in the PES program, we find Pro-Social landholders are less likely to enroll while Pro-Environment landholders are more likely to enroll. Thus we expect some level of additionality from the PES program. We discuss these findings in light of the theoretical framework on Self-Determination Theory (SDT). -
Publication
Assessing the Economic Value of Ecosystem Conservation
(World Bank, Washington, DC, 2004-10)This paper seeks to clarify how valuation should be conducted to answer specific environmental policy questions. In particular, it looks at how valuation should be used to examine four distinct aspects of the value of ecosystems: 1) Determining the value of the total flow of benefits from ecosystems; 2) Determining the net benefits of interventions that alter ecosystem conditions: 3) Examining how the costs and benefits of ecosystems are distributed; and, 4) Identifying potential financing sources for conservation. These four approaches are closely linked, and build on each other. They represent four different ways to look at similar data regarding the value of an ecosystem: its total value, or contribution to society, the change in this value if a conservation action is undertaken, how this change affects different stakeholders. Each of these approaches to valuation uses similar data, yet in very different ways, that is, sometimes at a subset, sometimes looking at a snapshot, and sometimes looking at changes over time. Each approach has its uses and its limitations. -
Publication
Paying for Biodiversity Conservation Services in Agricultural Landscapes
(World Bank, Washington, DC, 2004-05)This paper describes the contract mechanism developed for the Regional Integrated Silvopastoral Ecosystem Management Project, which is being implemented with financing from the Global Environment Facility (GEF). The project is testing the use of the payment-for-service mechanism to encourage the adoption of silvopastoral practices in three countries of Central and South America: Colombia, Costa Rica, and Nicaragua. The project has created a mechanism that pays land users for the global environmental services they are generating, so that the additional income stream makes the proposed practices privately profitable. -
Publication
A Review of the Valuation of Environmental Costs and Benefits in World Bank Projects
(World Bank, Washington, DC, 2003-12)The review examines the use of environmental valuation in 101 projects in the World Bank's environmental portfolio approved in fiscal years 2000, 2001, and 2002. It has three broad objectives. First, it examines the extent to which environmental costs and benefits have been incorporated in the economic analysis of projects. Second, it examines how well valuation was used. Third, it seeks to identify areas of weakness so as to feed into plans for capacity building. The results show that the use of environmental valuation has increased substantially in the last decade. Ten years ago, one project in 162 used environmental valuation. In recent years, as many as one third of the projects in the environmental portfolio did so. While this represents a substantial improvement, there remains considerable scope for growth. -
Publication
Tourism and the Environment in the Caribbean : An Economic Framework
(World Bank, Washington, DC, 2001-03)While tourism is one of the most important economic activities in the Caribbean, its reliance is based uniquely on the natural environment, indicating the resource base upon which all of this economic activity is based, is however fragile. Thus, sustainable tourism, and its economic benefits require ensuring that the environmental resources the sector relies on, are managed responsibly by the countries of the Caribbean, the tourism/travel industry, and the visitors themselves. The study examines the links between tourism, and environment, pointing at the magnitude of environmental threats, and the role of information, at creating strong incentives, addressing environmental problems certification schemes, to allow credible advertisement of its environmental quality. Capturing tourism economic "rents" - defined as an excess return to an asset - is viewed as a policy question for governments, on how to use these rents effectively. Mechanisms to capture rents include charging user fees when accessing a particular environmental resource, however, when environmental resources are public goods, user fees do not provide a practical means of capturing generated rents, thus more general taxation schemes are required. Based on this analysis, recommendations include the establishment of corporate income taxes, and moderate tariff rates for tourism inputs, establishing taxation, to be partly, and explicitly identified for environmental, and/or resource user fees.