This article contributes to the limited empirical evidence on the determinants of farmers' participation decision in agricultural land (land use-modifying) payments for ecosystem services (PES) in developing countries. It examines how farmer and farm characteristics, We used a multi-method approach to make use of both qualitative and quantitative data.We found that farm size, information, participation of farmers in the programme design and the needed degree of change in land management determined the adoption of sustainable land management practices. To foster the participation of small farmers, attention needs to be paid to the availability and access to information, participation of farmers in the design of programmes, local compatibility of practices, and support for initial costs of adoption. Keywords

ABSTRACT. Research on PES programs in agro-ecosystems is recent and limited in developing countries. The authors use a multi-method, quasi-experimental impact evaluation approach to examine direct and indirect livelihood impacts of the Equitable Payments for Watershed Services (EPWS) program piloted in the Morogoro region in Tanzania. The evaluation is based on a survey of 116 program participants and 117 non-participants, 32 semi-structured interviews and 16 focus group discussions to complement the survey data. They find that, while the EPWS program incentives resulted in direct benefits, indirect benefits such as increased crop yields, higher land values, new employment opportunities, more knowledgeable farmers, improved leadership skills asThe authors thank the University of Dar es Salaam on behalf of the Tanzania Commission for Science and Technology for granting permission to conduct this research. They thank EPWS-Morogoro staff, local community leaders, local government officers, farmers and enumerators for their support and participation in fieldwork. They gratefully acknowledge the support of the Government of Tanzania, Dar es Salaam University College of Education (DUCE) and the School of Earth and Environment, University of Leeds for funding this study.terms of use, available at https://www.cambridge.org/core/terms. https://doi.org/10.1017/S1355770X17000067 Downloaded from https://www.cambridge.org/core. IP address: 18.236.120.13, on 13 May 2018 at 03:05:24, subject to the Cambridge Core Environment and Development Economics 329 well as increased trust, expanded internal and external networks and strengthened institutions were more important. The results clearly indicate the potential of PES schemes to generate win-win outcomes in agro-ecosystems, but they also call for attention to equity in the design of PES programs implemented on agro-ecosystems.

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