Paying for Environmental Services: An Analysis of Participation in Costa Rica's PSA Program

background

This study evaluates demographic and other factors that played a role in the participation of households in Costa Rica's Payment for Environmental Services program.

Research Goals & Methods

The authors rely on economic analysis of technology adoption and farm and forestry program participation to assign variables and draw conclusions.

Conclusions & Takeaways

On average, the participants had larger farms with more labor-intensive agricultural activities compared with the average non-participant. Land tenure and legal titles to the land were critical factors in a household's participation. Overall, the authors suggest that the individuals who participated in this program were likely in less financial need and already well connected to funding sources. This trend of landowners with larger parcels participating may be beneficial environmentally and for efficiency in government expenses, however, it may not be as far-reaching to landowners of all demographic backgrounds.