Publication: Community Managed Forest Groups and Preferences for REDD+ Contract Attributes: A Choice Experiment Survey of Communities in Nepal
Loading...
Date
2015-06
ISSN
Published
2015-06
Editor(s)
Abstract
A significant portion of the world’s forests that are eligible for Reducing Emission from Deforestation and Forest Degradation, known as REDD , payments are community managed forests. However, there is little knowledge about preferences of households living in community managed forests for REDD contracts, or the opportunity costs of accepting REDD contracts for these communities. This paper uses a choice experiment survey of rural communities in Nepal to understand respondents’ preferences toward the institutional structure of REDD contracts. The sample is split across communities with community managed forests groups and those without community managed forest groups to see how prior involvement in community managed forest groups affects preferences. The results show that respondents care about how the payments are divided between households and communities, the severity of restrictions on firewood use, the restrictions on grazing, and the fairness of access to community managed forest resources as well as the level of payments. The preferences for REDD contracts are in general similar between community managed and non-community managed forest resource respondents, but there are differences, in particular with regard to how beliefs influence the likelihood of accepting the contracts. Finally, the paper finds that the opportunity cost of REDD payments, although cheaper than many other carbon dioxide abatement options, is higher than previously suggested in the literature.
Link to Data Set
Citation
“Dissanayake, Sahan T. M.; Jha, Prakash; Adhikari, Bhim; Bista, Rajesh; Bluffstone, Randall; Luintel, Harisharan; Martinsson, Peter; Paudel, Naya Sharma; Somanathan, E.; Toman, Michael. 2015. Community Managed Forest Groups and Preferences for REDD+ Contract Attributes: A Choice Experiment Survey of Communities in Nepal. Policy Research Working Paper;No. 7326. © World Bank. http://hdl.handle.net/10986/22190 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Publication The Future of Poverty(Washington, DC: World Bank, 2025-07-15)Climate change is increasingly acknowledged as a critical issue with far-reaching socioeconomic implications that extend well beyond environmental concerns. Among the most pressing challenges is its impact on global poverty. This paper projects the potential impacts of unmitigated climate change on global poverty rates between 2023 and 2050. Building on a study that provided a detailed analysis of how temperature changes affect economic productivity, this paper integrates those findings with binned data from 217 countries, sourced from the World Bank’s Poverty and Inequality Platform. By simulating poverty rates and the number of poor under two climate change scenarios, the paper uncovers some alarming trends. One of the primary findings is that the number of people living in extreme poverty worldwide could be nearly doubled due to climate change. In all scenarios, Sub-Saharan Africa is projected to bear the brunt, contributing the largest number of poor people, with estimates ranging between 40.5 million and 73.5 million by 2050. Another significant finding is the disproportionate impact of inequality on poverty. Even small increases in inequality can lead to substantial rises in poverty levels. For instance, if every country’s Gini coefficient increases by just 1 percent between 2022 and 2050, an additional 8.8 million people could be pushed below the international poverty line by 2050. In a more extreme scenario, where every country’s Gini coefficient increases by 10 percent between 2022 and 2050, the number of people falling into poverty could rise by an additional 148.8 million relative to the baseline scenario. These findings underscore the urgent need for comprehensive climate policies that not only mitigate environmental impacts but also address socioeconomic vulnerabilities.Publication Exports, Labor Markets, and the Environment(Washington, DC: World Bank, 2025-07-14)What is the environmental impact of exports? Focusing on 2000–20, this paper combines customs, administrative, and census microdata to estimate employment elasticities with respect to exports. The findings show that municipalities that faced increased exports experienced faster growth in formal employment. The elasticities were 0.25 on impact, peaked at 0.4, and remained positive and significant even 10 years after the shock, pointing to a long and protracted labor market adjustment. In the long run, informal employment responds negatively to export shocks. Using a granular taxonomy for economic activities based on their environmental impact, the paper documents that environmentally risky activities have a larger share of employment than environmentally sustainable ones, and that the relationship between these activities and exports is nuanced. Over the short run, environmentally risky employment responds more strongly to exports relative to environmentally sustainable employment. However, over the long run, this pattern reverses, as the impact of exports on environmentally sustainable employment is more persistent.Publication The Macroeconomic Implications of Climate Change Impacts and Adaptation Options(Washington, DC: World Bank, 2025-05-29)Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.Publication The Asymmetric Bank Distress Amplifier of Recessions(Washington, DC: World Bank, 2025-07-11)One defining feature of financial crises, evident in U.S. and international data, is asymmetric bank distress—concentrated losses on a subset of banks. This paper proposes a model in which shocks to borrowers’ productivity dispersion lead to asymmetric bank losses. The framework exhibits a “bank distress amplifier,” exacerbating economic downturns by causing costly bank failures and raising uncertainty about the solvency of banks, thereby pushing banks to deleverage. Quantitative analysis shows that the bank distress amplifier doubles investment decline and increases the spread by 2.5 times during the Great Recession compared to a standard financial accelerator model. The mechanism helps explain how a seemingly small shock can sometimes trigger a large crisis.Publication Impact of Heat Waves on Learning Outcomes and the Role of Conditional Cash Transfers(Washington, DC: World Bank, 2025-07-14)This paper evaluates the impact of higher temperatures on learning outcomes in Peru. The results suggest that 1 degree above 20°C is equivalent to 7 and 6 percent of a standard deviation of what a student learns in a year for math and reading tests, respectively. These results hold true when the main specification is changed, splitting the sample, collapsing the data at school level, and using other climate specifications. The paper aims to improve understanding of how to deal with the impacts of climate change on learning outcomes in developing countries. The evidence suggests that conditional cash transfer programs can mitigate the negative effects of higher temperatures on students’ learning outcomes in math and reading.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Preferences for REDD+ Contract Attributes in Low-Income Countries(World Bank, Washington, DC, 2015-06)This paper informs the national and international policy discussions related to the adoption of the United Nations Reducing Emissions from Deforestation and Forest Degradation Programme. Effective program instruments must carefully consider incentives, opportunity costs, and community interactions. A choice experiment survey was applied to rural Ethiopian communities to understand respondents’ preferences toward the institutional structure of the program contracts. The results show that respondents have particular preferences about how Reducing Emissions from Deforestation and Forest Degradation programs are structured with regard to the manner in which the payments are divided between the households and the communities, the restrictions on using grazing land, and the level of payments received for the program. Surprisingly, restrictions on firewood collection do not significantly impact contract choice. The paper further analyzes the structure of the preferences by using attribute interaction terms and socio-demographic interaction terms. The analysis finds significant regional variation in preferences, indicating that Reducing Emissions from Deforestation and Forest Degradation should be tailored to specific regions. Finally, the marginal willingness to pay for attributes is calculated using the traditional preference space approach, as well as the more recent willingness-to-pay approach.Publication Does Collective Action Sequester Carbon?(World Bank, Washington, DC, 2015-06)This paper estimate the effects of collective action in Nepal’s community forests on four ecological measures of forest quality. Forest user group collective action is identified through membership in the Nepal Community Forestry Programme, pending membership in the program, and existence of a forest user group whose leaders can identify the year the group was formed. This last, broad category is important, because many community forest user groups outside the program show significant evidence of important collective action. The study finds that presumed open access forests have only 21 to 57 percent of the carbon of forests governed under collective action. In several models, program forests sequester more carbon than communities outside the program. This implies that paying new program groups for carbon sequestration credits under the United Nations Collaborative Programme on Reducing Emissions from Deforestation and Degradation in Developing may be especially appropriate. However, marginal carbon sequestration effects of program participation are smaller and less consistent than those from two broader measures of collective action. The main finding is that within the existing institutional environment, collective action broadly defined has very important, positive, and large effects on carbon stocks and, in some models, on other aspects of forest quality.Publication Can Improved Biomass Cookstoves Contribute to REDD+ in Low-Income Countries?(World Bank, Washington, DC, 2015-08)This paper provides field experiment–based evidence on the potential additional forest carbon sequestration that cleaner and more fuel-efficient cookstoves might generate. The paper focuses on the Mirt (meaning “best”) cookstove, which is used to bake injera, the staple food in Ethiopia. The analysis finds that the technology generates per-meal fuel savings of 22 to 31 percent compared with a traditional three-stone stove with little or no increase in cooking time. Because approximately 88 percent of harvests from Ethiopian forests are unsustainable, these findings suggest that the Mirt stove, and potentially improved cookstoves more generally, can contribute to reduced forest degradation. These savings may be creditable under the United Nations Collaborative Program on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries. Because of the highly specific nature of the Mirt stove and the lack of refrigeration in rural Ethiopia, rebound effects are unlikely, but this analysis was unable completely to rule out such leakage. The conclusions are therefore indicative, pending evidence on the frequency of Mirt stove use in the field. The effects of six randomized behavioral treatments on fuelwood and cooking time outcomes were also evaluated, but limited effects were found.Publication Enhancing Carbon Stocks and Reducing CO2 Emissions in Agriculture and Natural Resource Management Projects(Washington, DC, 2012-02)There is global interest in promoting mitigation and adaptation in agriculture, forest, and other land-use (AFOLU) sectors to address the twin goals of climate change and sustainable development. This guideline deals with how to enhance carbon stocks in general in all land-based projects and its specific relationship with agriculture productivity. It outlines specific steps and procedures that need to be followed by project proponents and managers of land-based projects to enhance carbon stocks synergistically with increasing crop productivity. This guideline for carbon stock enhancement or CO2 emission reduction in agriculture and natural resource management (NRM) projects covering all land-use sectors presents two approaches. The first approach is a generic one covering all the land categories and interventions aimed at promoting the economic benefits (crop, timber, and non-timber wood product production, and employment or livelihood generation) and environmental benefits (soil and water conservation, land reclamation, and biodiversity protection) of a project, synergistically optimizing carbon stock enhancement as a co-benefit. The second approach provides guidelines for project developers to maximize project C-benefits along with promoting high-value cropping systems and production practices appropriate for a given agro-ecological region as well as to meet the needs of the local stakeholders, such as farmers or landless laborers. An illustration of the two approaches is presented at the end of the executive summary. The guidelines provide methods for selection and incorporation of carbon stock enhancement modules and practices along with methods for estimation and monitoring of carbon stock changes as well as assessment of social and economic implications of carbon enhancement (C-enhancement) interventions.Publication Peru - Country Note on Climate Change Aspects in Agriculture(Washington, DC, 2009-12)This country note briefly summarizes information relevant to both climate change and agriculture in Peru, with focus on policy developments (including action plans and programs) and institutional make-up. Like most developing countries, Peru has submitted only one national communication to the United Nations Framework Convention on Climate Change (UNFCCC), with the second one under preparation. Land use change and forestry are the largest contributors to greenhouse gas (GHG) emissions in the country. The emission reduction potential of the agricultural (including land use change and forestry) sector is large, though not yet sufficiently explored. Peru currently counts with one Clean Development Mechanism (CDM) project in the agricultural sector, and one CDM reforestation project. Reducing vulnerability to climate change and, in particular, to water scarcity due to variations in precipitation and glacier retreats is of increasing importance in the agricultural sector, coupled with more sustainable land management practices.
Users also downloaded
Showing related downloaded files
Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.