How Can Market Mechanisms for Forest Environmental Services
Help the Poor? Preliminary Lessons from Latin America
International Institute for Environment and Development, London, UK
International Institute for Environment and Development, Edinburgh, UK
Center for International Forestry Research, Belém, Pará, Brazil
Market mechanisms for forest environmental services are a new
approach for conservation but there is also increasing interest in the derived
developmental benefits of these mechanisms. We first propose a conceptual
framework for future research on the livelihood impacts of environmental service
markets. We then review eight Latin American case studies on carbon
sequestration and watershed protection market initiatives, finding positive
local income effects in most cases, more land tenure security and
socio-institutional strengthening in some cases, but some negative effects also.
We recommend pro-poor policy measures such as reducing smallholders’ transaction
costs, and removing inappropriate access restrictions.
Keywords: forests, environmental services, market mechanisms,
livelihoods, conservation, poverty.
Published in World Development, vol 33, no 9, pp.1511-1527 (for more
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