Impacts of payments for environmental services on local development in northern Costa Rica: A fuzzy multi-criteria analysis

Market mechanisms for forest environmental services are increasingly used for promoting environmental conservation, and their impacts on development are of considerable interest. In Costa Rica a national scheme of Payment for Environmental Services (PSA) rewards landowners for the services provided by different forest land-uses. We evaluated the impacts of reforestation under the PSA on local development in the North of the country. We applied a fuzzy multi-criteria analysis including socioeconomic, institutional, and cultural dimensions and based on the individual perceptions of landowners.The impacts of the PSA applied to reforestation are positive; negative economic impacts are balanced by positive institutional and cultural impacts. In most dimensions, the impacts on the poorest landowners are notably positive and generally higher than for upper class landowners. However, the short-term incomes of the poorest landowners decrease as a consequence of reforestation. This problem may engender negative outcomes and reduce the participation of the poorest landowners in the PSA. Positive impacts were stronger for landowners applying to the PSA through a local non-governmental organization.     

Farmer participation in reforestation incentive programs in Costa Rica

Reforestation programs are a common policy response among developing country governments in the tropics attempting to deal with environmental and economic problems caused by widespread deforestation. The objective of this paper is to examine participation by small-and medium-sized farms in two reforestation programs undertaken in recent years by one country, Costa Rica, which has been at the forefront of developing country environmental protection efforts. Analysis of a survey of 243 program participants and non-participants shows that farm households participating in reforestation programs had generally larger farm sizes, were dedicated to low labor-intensive, land-extensive agricultural activities, faced significant family on-farm labor constraints, were more heavily dependent on off-farm income sources, and had more extensive contact with local extension efforts. Logistic regression is employed to econometrically identify demographic, economic, and land use determinants of farm household participation in reforestation programs; the implications of these findings are analyzed. The limitations of reforestation programs, especially with regard to management factors and quality of reforested plots, are reviewed. Implications for improving the efficiency of reforestation programs and the merits of other policy alternatives are also discussed.     

Challenging the Traditional Forestry Extension Model: Insights from the Woods Forum Program in Massachusetts

Traditional forestry education and outreach activities tend to focus on transfer-of-knowledge, often through workshops initiated and led by professionals to “teach” landowners about forest management and conservation. Less than 10 percent of family forest owners in the US have a management plan, participated in cost-share programs, certified their forest land, or hold a conservation easement, suggesting flaws in this traditional model. Some researchers and practitioners have suggested the need for a paradigm shift away from transfer-of-knowledge to more facilitative, participatory approaches, among which peer learning has gained growing attention and is supported by a number of behavioral theories. By analyzing data from participant feedback of a peer learning pilot program in Massachusetts and a follow-up mail survey, this paper examines the perceived usefulness of peer-to-peer interactions and the effect of peer learning over time. The results suggest peer learning did not only appeal to landowners with forestry background, but also succeeded in attracting inexperienced landowners. Participants rated their peer-to-peer experience positively. The retention of information obtained through the program was reflected by participants’ ability to correctly identify foresters, land trust organizations, and reasonable sources of forestry or land management advice. Participants also shared a strong willingness to spread information obtained through peer learning. This study contributes to the identification of potential barriers to and opportunities for peer learning, informs forestry extension efforts in the US and beyond, and highlights the importance of integrating peer learning into the broader forestry education, technical assistance, and financial incentive programs to increase participation and promote sustainable forest management and conservation.     

Use and effectiveness of Washington state’s extension forest stewardship program

This paper describes the use by family forest landowners of educational programs provided by Washington State University Cooperative Extension (WSUCE), and the associated use of technical assistance programs provided by state and federal agencies and the private sector. Approximately 100,000 family forest owners controlled 19% or over 1.2 M ha of Washington’s forestland and accounted for 29% of the timber harvested in the state on a volume basis in 1998. A variety of public and private assistance and education programs are available to encourage and help family forest owners manage their forests. In 1999 a mail survey was conducted to evaluate use and effectiveness of Washington’s family forest assistance and education programs. Over half of the 872 responding family forest landowners had contact with an extension educator, program or educational material, and about three quarters of these respondents gave an overall rating of the usefulness of extension programs and materials as good or excellent. Respondents attending WSUCE forestry educational programs have larger median land ownership size, are older, have owned their forests longer, have a higher rate of absentee ownership, and are better educated than non-users. They are more likely to actively manage their forests for timber production and exhibit a clearer understanding of the multiple-use capabilities of their forests.     

Family Forest Owners’ Perceptions of Landowner Assistance Programs in the USA: A Qualitative Exploration of Program Impacts on Behaviour

Using data collected from a series of focus groups, this study examines how landowner assistance programs (which may include management plans, cost-share, technical assistance and advice, and education components) affect family forest owner behaviour in the USA. Not surprisingly, most owners who participated in assistance programs had pre-existing management objectives. Participation in the management plan and cost-share components was found to facilitate the stewardship of private forests by assisting and reinforcing the behaviour of those landowners who already intend to manage their land in some pre-conceived manner. Advice and educational components appeared to do more in terms of introducing owners to new ideas. The mix of components offered as part of a landowner assistance program should consider the goals of the program and which components will be most effective in achieving those goals.     

Cost sharing for pre-commercial thinning in southern pine plantations: Willingness to participate in Virginia's pine bark beetle prevention program

Forest management that reduces southern pine beetle (SPB) risk benefits not only the landowners, but all who draw benefits from southern pine forests, including other owners whose risk is reduced by landscape-wide efforts. One such practice is pre-commercial thinning (PCT) of pine stands, which may be unattractive to landowners due to substantial upfront costs and delayed or uncertain financial return. Because societal benefits are not fully realized by those who implement PCT, there may be a market externality whereby it is underprovided. Virginia's Pine Bark Beetle Prevention Program attempts to correct this externality by reimbursing a portion of PCT costs. To examine the efficacy of cost sharing in promoting participation, a survey was sent to 1200 NIPF landowners in Virginia, where southern pine is prevalent and SPB is a concern. Willingness to participate is measured using a referendum-style question for PCT on a hypothetical, qualifying property over a cost-share range of 20% to 90%. Results of discrete choice models indicate that cost sharing has a significant, positive effect on willingness to participate overall, though results indicate that increasing reimbursement above the 50% level is unlikely to increase participation substantively. Education and ownership preferences are also significant predictors of willingness to participate, with potential implications for program targeting and marketing.     

Ecosystem management and nonindustrial private forest landowners in Washington State,USA

Washington’s non-industrial private forest (NIPF) landowners control 1.2 M ha, or nearly 20%, of the forestland in Washington State. Results of a mail survey suggest that educated and informed NIPF landowners are more likely to show interest in ecosystem-based management programs. NIPF respondents in Washington State indicated an appreciation for the temporal vision and landscape perspective crucial to understanding the foundation of ecosystem management. It is concluded that public agencies need to involve private landowners in ecosystem-based projects by using a more ‘place’ based cross-boundary management approach. NIPF landowners must be actively involved in the decision-making so that the process, for them, is one of self-governance. Providing landowners with opportunities for education and assistance may offer the best prospects for achieving ecosystem management objectives across diverse ownerships     

Norwegian family forest owners' willingness to participate in carbon offset programs

Forests act as carbon sinks and can make significant contributions to climate change mitigation efforts. In Norway, family forest owners own 80% of productive forestland and play a central role in the management of the country's forests. Yet little is known about whether these landowners would be interested in increasing carbon sequestration on their land and selling carbon credits. Only a handful of studies have examined the factors that motivate family forest owners to participate in carbon offset programs, and all of these studies have been conducted in the United States. This study addresses this information gap using data from a mail survey of 1500 Norwegian family forest owners. A logistic regression model was developed to examine the effect of various carbon program, forestland, and landowner characteristics on participation in a hypothetical carbon offset program. Results suggest that there is a considerable amount of interest among Norwegian family forest owners and that the most important predictors of participation are payment amount offered, perceived barriers posed by management actions, importance placed on non-market forest amenities, and attitudes towards climate change.     

California's regulatory forest carbon market: Viability for northeast landowners

Carbon markets have the potential to reward landowners for improved forest management and forest conservation. To date, the Over the Counter (OTC) voluntary market represents the greatest opportunity for forest landowners to participate in carbon transactions. However, lack of a consistent carbon price signal and sporadic demand coupled by high transaction costs has prevented widespread participation from family forest landowners. Adoption of a U.S. based cap-and-trade program reduces price risk and may provide incentives for sustainable forest management across large areas. Yet few studies have examined the supply side of carbon offsets and factors affecting project financial viability. To address this gap, we assessed how (1) property characteristics (i.e. stocking level, forest type, size etc.); (2) silvicultural treatments; and (3) protocol and legislative requirements affect the financial viability of compliance forest offset projects, focusing on California's Air Resource Board (ARB) program due to its significance as the world's second largest carbon market. We used forest inventory data from 25 properties in the northeastern United States to examine the viability of the sites as ARB offset projects. We utilized the U.S. Forest Service Forest Vegetation Simulator for our growth and yield simulations. To examine the factors that influence project viability, we used a classification and regression tree analysis performed in S-Plus software. Results indicate C stocking and property size are the most important property characteristics driving return on investment. However, protocol requirements and legislative assumptions impacting long-term monitoring costs are also important factors. While reduced price risk in a compliance carbon market has the potential to improve forest management in North America; high initial project development costs, long-term monitoring obligations, and legislative uncertainty are significant barriers that will limit family forest landowner market participation. The model developed here can be used by U.S. landowners to assess the financial viability of their property as a compliance offset project and can be utilized by policymakers to develop cost-effective climate change policy.     

Mitigating Climate Change Through Small-Scale Forestry in the USA: Opportunities and Challenges

Forest management for carbon sequestration is a low-cost, low-technology, relatively easy way to help mitigate global climate change that can be adopted now while additional long-term solutions are developed. Carbon-oriented management of forests also offers forest owners an opportunity to obtain a new source of income, and commonly has environmental co-benefits. The USA is developing climate change policy that recognizes forestry as a source of offsets in carbon markets, and the emissions trading programs and standards that have developed to date offer opportunities for afforestation, reforestation, reduced emissions from deforestation and forest degradation, and improved forest management projects. Private forest owners are key players in carbon markets because they own over half of the forest land in the USA and carbon offsetting from public forest land is rare. However, a number of environmental, economic, and social constraints currently limit carbon market participation by forest owners. Key issues include: the low price of carbon and high cost of market entry; whether small landowners can gain market access; how to meet requirements such as management plans and certification; and whether managing for carbon is consistent with other forest management goals. This paper provides an overview of current and emerging opportunities for family forest owners to contribute to climate change mitigation in the USA, and explores ways of overcoming some of the challenges so that they can take advantage of these opportunities.     

Voluntary agreements in protecting privately owned forests in Finland — To buy or to lease?

A voluntary conservation approach may reveal environmentally minded landowners who are willing to protect their lands with a compensation that is lower than the market price based compensation. Consequently, voluntary conservation programs may induce lower costs than traditional obligatory programs, such as a land taking. We compared the costs accrued from land purchasing with those from temporal land leasing. The costs included both direct costs, such as fees of land acquisition and compensation payments in land leasing, and transaction costs. We used a data set from a Finnish pilot program called Trading in Natural Values (TNV). In this new practice landowners and the authority that represents the Finnish government sign a fixed-term contract. According to these contracts the forest owners produce biodiversity services on their lands and receive a compensation payment. We developed a framework where land purchasing and leasing can be treated equivalently in terms of duration of time, so that their costs can be compared consistently. Land purchasing and leasing yielded quite similar cost levels. This indicates that the competitive bidding process in TNV has not worked properly.     

Property Taxes and Forests in West Virginia: A Historical Review

Managed Timberland Tax Incentive Program (Managed Timberland), the program which authorizes preferential property taxation of forest land in West Virginia, was created in anticipation of expected drastic changes in property assessment values when the state ordered a reassessment to correct a long-standing underassessment problem. Since the enactment of Managed Timberland no detailed research has been conducted to determine the benefits of the policy to the state or to private forest landowners. Managed Timberland has low enrollment rates and may be an unfair shift of the tax burden to non-forest owners. A detailed study of Managed Timberland was conducted to determine the effectiveness of the policy. This study employs a historical review to examine the implication of past tax policies and provide a context and direction for future research and policy recommendations. The historical review reveals that in West Virginia, a preferential tax program for forests is desirable, but requires changes due to a history of inefficient and unfairly distributed property taxes and inadequate benefits from Managed Timberland to forest landowners. Simplification of forest tax policies would make these policies more transparent and understandable to landowners and easier for local tax authorities to administer. In addition, landowners may be more inclined to participate in preferential forest tax programs if program outreach and reward systems were more in keeping with known landowner values and beliefs.     

Family Forest Owner Characteristics Shaped by Life Cycle,Cohort, and Period Effects

Understanding differences and similarities among family forest owners is important in the context of forest land conservation. This study assesses similarities and differences in landowners by analyzing life cycle effects, cohort differences, and period-specific events that shape people’s attitudes and behaviors towards their forestland over time. Using data collected by the U.S. Forest Service’s 2013 National Woodland Owner Survey, bivariate, random forest and classification tree analyses were used to examine landowners in terms of demographic cohorts. Some attitudes and behaviors of family forest owners were identified as being a result of life cycle (e.g., recreating on their wooded land, plans to transfer land in the next 5 years), cohort (e.g., education level, help with programs or policies), and period (e.g., wars, economic depressions changing attitudes or behaviors) effects. While many of the attitudes and behaviors are common across cohorts. Understanding the reasons for similarities and differences among landowners could help program and policy developers target the appropriate group of people and achieve the highest success rates for policies and programs.     

Economic incentives for coordinated management of forest land: a case study of southern New England

Coordinated management among many private forest land owners will often be required to achieve ecosystem management at the landscape scale. A case study of landowners in southern New England shows that although most hold favorable attitudes towards coordinated management, economic incentives may be needed to actually implement coordinated management programs. Yet the conjoint analyses used in this study suggests that economic incentives, such as property tax reductions, are not likely to substantially increase the probability that coordinated management programs will actually be undertaken. For example, an increase in property tax savings from $706 per year to $2000 per year only increased the probability of program adoption from 1.4 to 5.6%. Alternative ways in which coordinated management programs might be marketed are discussed.     

Evaluation of forestry programs: A case study of the forestry incentives program in Massachusetts

A general methodology is proposed to evaluate forestry programs which are aimed at increasing timber supply from non-industrial private forest lands. A financial analysis of the forestry activities included in the program or a questionnaire submitted to the landowners should serve to establish what would have been done in the absence of the program. An economic analysis aggregating the marginal benefits and costs for each program participant can be related in different benefit—cost ratios.The methodology is applied to the evaluation of the Forestry Incentives Program (FIP) in Massachusetts. The study shows that the efficiency benefit—cost ratio is > 1 at 4% and 6.625% and that the landowner's management decisions are crucial to the performance of the program.     

What Tree Species Work Best for Reforestation? Human Perceptions and Beliefs in Ghana’s High Forest Zone

We identified the perceptions and beliefs that underpin species selection for reforestation among smallholder farmers in the Wassa Amenfi District located in Ghana’s High Forest Zone. Using the Theory of Planned Behaviour as a conceptual framework, we collected perceived outcome beliefs, social referents, and control factors from the farmers with a pre-tested, Likert scaled, structured questionnaire. A Mann–Whitney U test was conducted to test for significance of differences between the responses from farmers already planting trees (PF) and those not planting trees (NPF). We found that NPF were significantly higher than PF in belief strength that tree species that have straight boles, grow fast, and have coppicing abilities are the ideal species for reforestation. We found no significant differences between the farmer groups in their motivation to comply with family members and target market as social referents in species selection; however, NPF were significantly higher in compliance with fellow farmers and landowners. NPF were significantly higher than PF that inadequate planting materials and length of investment are the main control factors, serving as the impediments discouraging NPF from participating in indigenous species reforestation.     

Public compensation for windstorm damage reduces incentives for risk management investments

Governments of some European countries compensate landowners for windstorm damage to forests. We analyze the impact of such programmes on non-industrial private forest owner decisions to purchase an insurance policy for windstorm coverage and other natural events and/or invest in risk-reducing forest management activities. We develop a theoretical model to predict demand for an insurance policy or risk-reducing forest management activity, and improve upon previous efforts by varying the damage losses proportional to timber stand value. We characterize the comparative static effects on risk management investments of variations in the price of insurance, landowner risk attitude, timber stand value, and presence or absence of public compensation. Then we discuss public policy implications and analyze some alternative approaches. We conclude that providing public financial assistance to non-industrial private forest owners after damage-causing events may reduce their incentive to purchase insurance or invest in protective forest management activities.     

Farmlink: promoting conservation buffers farmer-to-farmer

Farmer-to-farmer outreach was used within a targeted watershed to promote the installation of conservation buffers. In this program called “FarmLink”, four farmers/landowners were employed part-time as “advisors” and trained by University of Nebraska-Lincoln Extension, Natural Resources Conservation Service, and Natural Resources District personnel. Topics included basic buffer design and benefits, availability of incentive programs, and sales techniques. These individuals then contacted their neighbors to explain the need for and benefits of buffers and other conservation practices. In early 2003, 42 landowners were contacted, leading to contracts for the establishment of 16 separate conservation practices on 24.8 ha (61.3 acres) of farmland. These included just over 8 ha (20 acres) of grassed waterways or similar plantings and 14 ha (35 acres) of streamside buffers. In addition, because of information received in the training sessions, one of the advisors installed 1.7 ha (4.3 acres) of streamside buffers, 0.45 ha (1.1 acres) of grassed waterways, and 2.0 ha (5.0 acres) of grasses and forbs on his own land. During these contacts, it became apparent that: (1) many farmers and landowners were not familiar with the multitude of programs available to assist with the installation and maintenance of conservation practices; and (2) landowners generally appreciated the personal touch of someone coming out to talk directly to them, pointing out specific areas on their land where conservation practices could best be implemented, discussing available compensation programs, and describing management needed to help ensure practice success. Although one-to-one contacts cannot be used in all cases, it was demonstrated to be effective in this watershed.     

An evaluation of farmers’ experiences planting native trees in rural Panama: implications for reforestation with native species in agricultural landscapes

In the Republic of Panama, reforestation with native species is of great interest, but many landholders often do not participate in tree planting projects and little information exists about landholder interest in, or experiences with, native trees. This study evaluates the experiences of farmers participating in a native species reforestation initiative in rural Panama to identify lessons learned that can guide on-going or future tree planting efforts. Based on the results of a questionnaire administered to program participants and non-participants (n = 68), we found that trees are important to farmers for multiple reasons, primary a variety of environmental and economic benefits. No relationship between the size of landholdings or land tenure status and the desire to plant trees was found. All participants in the program considered their experience to be positive, few had problems with their plantations, and most were interested in planting more native trees. The program’s frequent and ongoing technical support was an important factor for farmers. These results indicate widespread interest in, and success with, planting native species and underscore the need to systematically examine farmers’ interests and perceptions when planning, implementing, and evaluating reforestation initiatives.     

Cost sharing for timber stand improvements: Inducement or crowding out of private investment?

Cost sharing has been widely used to encourage the management of privately owned forests. While there is evidence of its capacity to promote management activities, it still remains open whether cost sharing induces additional private investments or whether it substitutes public funds for private capital. This study re-examines the latter issue in the case of Finnish family forest owners' pre-commercial and restoration thinnings using data from a nation-wide survey (n = 3801). A two-step model of cost-share participation and stand improvements is used to account for the endogeneity of cost-share participation. Cost-share participation was related to personal assistance and clearly encouraged forest owners' engagement in and extent of stand improvements. The inducement or crowding out of private capital is analytically shown to depend on the relative magnitude of forest owners' response to cost-share incentives in each specific situation. In the present case evidence suggests that cost sharing has had an inducement effect on private investment. This is likely related to the advanced personal assistance that has promoted the knowledge of and participation in cost sharing. The findings suggest that cost sharing can be a useful component in a balanced policy mix especially when combined with informational instruments.