Get the CIFOR publications update

CIFOR publishes over 400 publications every year on forests and climate change, landscape restoration, rights, forest policy, agroforestry and much more in multiple languages.

Heterogeneous users and willingness to pay in an ongoing payment for watershed protection initiative in the Colombian Andes

Heterogeneous users and willingness to pay in an ongoing payment for watershed protection initiative in the Colombian Andes

Flat fees in payment for environmental services (PES) schemes promote administrative ease, and are perceived as egalitarian. However, when environmental-service (ES) buyers are heterogeneous in their income and water-consumption levels, this scheme may not be optimal, as total payments might become too low and services under-supplied. This paper estimates willingness to pay (WTP) higher fees from hydrological-service buyers in an ongoing PES initiative in an Andean watershed in Colombia, where small, flat user payments have been introduced. ES users fall into two highly heterogeneous categories: smallholder peasants and recreational-house owners. We perform a contingent valuation analysis in a representative sample of 218 households. For improved water services, ES buyers on average are willing to pay monthly about US$1 premium over current flat PES rate. Users’ heterogeneity, however, affects significantly this outcome: while recreational-house owners are willing to pay monthly on average US$1.61 more than the current fee, smallholders only US$0.41. Spatial variables, such as distance to the water distribution point and to the town center, importantly influence WTP. Results may help designing user-driven PES schemes in line with efficiency and equity objectives.

Authors: Moreno-Sánchez, R.P.; Maldonado, J.H.; Wunder, S.; Borda-Almanza, C.

Topic: payments for environmental services,Payment for watersheed services,watersheds

Geographic: Colombia

Publication Year: 2012

ISSN: 0921-8009

Source: Ecological Economics 75: 126–134

DOI: 10.1016/j.ecolecon.2012.01.009

Altmetric score:


Export Citation

Related viewing

Top

CIFOR website usability survey

We're conducting research on our website and we'd love to hear from you about your experience on cifor.org. This will help us make improvements and prioritize new features. The survey should only take 5 minutes, and your responses are completely anonymous.

If you have any questions about the survey, please email us: cifor@cgiar.org

We really appreciate your input!

Start survey
I don’t want to participate
Remind me later