Program Outcomes of Payments for Watershed Services in Brazilian Atlantic Forest: How to Evaluate to Improve Decision-Making and the Socio-Environmental Benefits

Abstract

In 2014, the Paraíba do Sul River Basin Integration Committee (CEIVAP) established its Pilot Program of Payments for Ecosystem Services (PES), focusing on water resources. The projects from this program share the same goal: to disseminate the use of PES as a tool for land management in watersheds. Contemplating 11 municipalities, including 84 landowners, conserving 718.63 ha and restoring 188.58 ha, this program was concluded in April 2020. Reviewing its historical and contextualizing features, we have observed that the outcomes from this program extend beyond these numbers. Here, we propose an evaluation methodology comparing the efficiency, performance, and impact of the PES projects. Based on new indicators that are easy to measure, we have identified key elements that have asymmetrically affected the projects. The complexity of the project scope and the execution of high-cost, and risky interventions on rural properties, have resulted in expensive projects with little tangible outputs. Our results support the upgrade of public policy for investment in ecosystem services by CEIVAP in the Paraíba do Sul watershed. In addition, our results can be more successful by improving the decision-making processes for similar projects in other watersheds.

Estimating the value of ecosystem services in agricultural landscapes amid intensification pressures: The Brazilian case

“…These figures are proxy estimates that nevertheless give strong support for the implementation of environmental policies and programs in the Paraná State to reward farmers that are in agreement with the environmental laws in terms of protected areas and further maintain additional areas of conservation in their properties. Our estimates are of the same order of magnitude as the average payments (around R$300/ha/y, according to government sources) of a PES financed by the Sao Paulo State government for setaside farmland for native vegetation conservation and restoration and production systems improvements (a description of the scheme is available in Santos et al, 2020). The Sao Paulo PES determines values of compensation based on opportunity cost related to not using part of the farmland.…”

“…Those instruments are considered by a significant number of Brazilian actors as an innovative way of implementing environmental policies and are increasingly taken into account in national regulations (Filoche, 2017, Sauquet et al, 2014. The PES schemes implemented in Brazil so far are generally experimental with currently small scale coverage (Viani et al, 2019, Santos et al, 2020. However, a more wide-spread implementation faced two fundamental problems.…”

Water Economics: An In-Depth Analysis of the Connection of Blue Water with Some Primary Level Aspects of Economic Theory I

“…Water is usually a heavily regulated commodity, presumably by the state, due mainly to the fact that the natural characteristics of water, chief among which the fact that it is a natural monopoly. This does not allow for the creation of competitive markets that could establish economic value [136,137], despite the OECD policy of "user pays" [138] most recently applied in Brazil [139,140]. This leads to the fact that when a water charge is imposed, which is equivalent to a tariff [141], it is usually not commensurate to either its otherwise perceived economic value or to its cost of supply, due to subsidies or government financing of infrastructure passed on to general taxation.…”

Traditional Yerba Mate Agroforestry Systems in Araucaria Forest in Southern Brazil Improve the Provisioning of Soil Ecosystem Services

“…In this context, the production of yerba mate in traditional agroforestry systems in southern Brazil, based on culturally accumulated community knowledge, has contributed to the conservation of Araucaria Forest remnants [29]. When well-managed, they can contribute to sustainable land use, soil protection, water security, biodiversity, and the rural environment, as well as towards SES [31][32][33][34]. However, these SES have not yet been valued for economic compensation.…”