Description

This article evaluates two established payment for environmental services (PES) schemes in Ecuador: the watershed protection program in Pimampiro and the PROFAFOR carbon sequestration program. The design, effectiveness, and impacts of these schemes are described and compared.

Contents:

1. Introduction 2. Pimampiro 2.1. Services, stakeholders, and implementation 2.2. Implementation and transaction costs 2.3. Permanence and leakage 2.4. Conditionality, monitoring and sanctions 2.5. Additionality 2.6. Selection of participants 2.7. Welfare effects on disadvantaged groups 2.8. Current situation and next steps 3. PROFAFOR 3.1. Services, stakeholders, and implementation 3.2. Implementation and transaction costs 3.3. Permanence and leakage 3.4. Conditionality, monitoring and sanctions 3.5. Additionality 3.6. Selection of participants 3.7. Welfare effects on disadvantaged groups 3.8. Current situation and next steps 4. Comparisons and conclusions 4.1. PES features and design 4.2. PES amounts and opportunity costs 4.3. Environmental efficiency 4.4. Pro-poor effects 5. Discussion