Econ Log - PES and Poverty

Do PES programs help reduce poverty?

PES programs were not originally designed to reduce poverty, but it is argued in both directions. Some say that it is not an effective way to reduce poverty because the people who will reap the benefits from the program are the landowners, who tend not to be poor. Others say that it will cause problems because landless peoples could be relying on the land for subsistence, weather it is farming or timber sales.

What are the obstacles to participate in this?

Some of the obstacles that block people from participating in this program are limitations of geography. Because many of the programs revolve around water, people must be in a target watershed or even in a target part of a watershed in order to be eligable. There are an entire slew of other obstacles, including profitability, access to credit and access to technical assistance.

What are some socio-economic impacts of PES programs?
Though there could be additional income for participants of the program, there are also some posible negative impacts. Because land might be stopped from being converted into agriculture land, food that could otherwise have been grown, would not be and thus food prices could rise.