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Program for the Payment of Hidrological Environmental Services of Forests: Implementation and targetting 2003-2005. Josefina Braña Varela, Carlos Muñoz Piña INSTITUTO NACIONAL DE ECOLOG ÍA. Program’s Objective.
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Program for the Payment of Hidrological Environmental Services of Forests: Implementation and targetting 2003-2005 Josefina Braña Varela, Carlos Muñoz Piña INSTITUTO NACIONAL DE ECOLOGÍA
Program’s Objective • Stop the deforestation that threatens those forests critical for watershed-related environmental services in Mexico • Foster the development of local markets for environmental services By Paying land owners to preserve forest land and avoid its transformation for other uses, such as: agriculture and cattle raising.
Rules of Operation for PSAH (2003-2005) Forests important for water With potential future clients Good quality Forests & & Overexploited acquifers 80% cover Cities > 5K or High water scarcity zones Priority Mountains Providing other environmental services? or H related natural disasters Natural protected areas
Challenges for PES • Unexpected success: Three times as many applicatons as funds. (Excess demand) • Lets look at the actual targetting
Targetting: • By type of forests • By type of environmental service • By level of poverty • By risk of deforestation • Important: voluntary program implies selfselection.
SEEKING EFFICIENCY • Objetive: Maximize protection of environmental services through avoiding deforestation • Efficiency: Maximize value to fee-payers through avoiding maximum hectares deforested at minimum cost, within budget constraint.
How to measure real risk of deforestation? • Main driving force: land use changes. • More profitable agricultural and cattle ranching activities. • Short term horizon caused by poverty (Guevara:2002). • Specific patterns identified through econometrics: transport cost, slope, potential ag yields.
Land use changes and distance to market 100% 80% 60% 40% 20% 0% 15 75 135 195 255 315 375 435 495 555 615 675+ MINUTOS Primario conservado Secundario regenerado Primario degradado Primario deforestado Secundario sin cambio Secundario deforestado