This paper analyses the social effects of the Payment for Environmental Services (PES) scheme within the Virilla watershed in Costa Rica. This is a programme where forest and plantation owners are financially and legally acknowledged for the environmental services that their forests provide to the community. Some of the main findings of this study were:
- that in this particular watershed, landowners were relatively wealthy and well educated, thus limiting the conclusions within the context of poverty alleviation;
- there were significant impacts on household budgets in terms of:
- an average increase of approximately 15% in the household disposable income;
- a higher level of investment in the farm (eg. signage, paths, etc) in forested sections, and investment to increase productivity in other areas of the farm (i.e. livestock);
- a variable level of job creation, mostly in relation to hiring of occasional workers;
- and in general, there was little knowledge among the landowners how the PES works.
- the main impacts on social assets included a process of institutional innovation; a process of “debureaucratisation"; promotion of voluntary agreements to improve the environment;
- the main impact on human assets has been a substantial improvement in environmental education and solid waste management, involving schools, parents and civil society;
- the main impact on natural assets included contributing to the protection of approximately 16,500 ha of primary forest, the sustainable management of 2,000 ha of forest, and the reforestation of 1,300,000 ha.
