Designing community-based payment scheme for ecosystem services: a case from Koshi Hills, Nepal
The study was carried out to design payment for ecosystem services (PES) scheme to enhance the effectiveness of existing drinking water supply project. This study determined willingness-to-pay of water users using choice experiment method and identify the willingness of watershed households to participate in the scheme by household survey. The results suggest that creating a multi-stakeholder institution at the local level, led by local body, will make the implementation of the PES feasible. This would create trust between ecosystem managers and service consumers, facilitates monitoring system and encourages their participation in watershed management. In the beginning, water users would like to pay less than their willingness-to-pay because it may take time to improve the situation. This suggests that community-based payment for ecosystem services scheme in rural area can be kicked off, only after the external support this is because the amount committed by water users are not sufficient to implement all required activities and ecosystem managers will not make an investment expecting that they will be paid in the future. The study also recommends providing upstream communities in-kind support rather than cash may reduce the transportation cost as well as risk of corruption. This also ensures that the fund is spent on planned activities.
KeywordsWatershed Incentives Local government Water users Institution
This study is jointly undertaken by International Center for Integrated Mountain Development (ICIMOD)/Koshi Basin Programme (KBP) and Green Governance Nepal (GGN). KBP is supported by the Australian Government through the Sustainable Development Investment Portfolio for South Asia, as well as core funds of ICIMOD contributed by the governments of Afghanistan, Australia, Austria, Bangladesh, Bhutan, China, India, Myanmar, Nepal, Norway, Pakistan, Switzerland, and the United Kingdom. The views and interpretation in this publication are those of the authors and should not be ascribed to GGN, ICIMOD or their donors.
- ADB. (2011). Nepal small towns water supply and sanitation project: Project brief. (Asian Development Bank (ADB), Ed.). Kathmandu.Google Scholar
- Bulte, E. H., Lipper, L., Stringer, R., & Zilberman, D. (2008). Payments for ecosystem services and poverty reduction: concepts, issues, and empirical perspectives. Environment and Development Economics, 13(3), 245–254.Google Scholar
- Corbera, E., Soberanis, C., & Brown, K. (2009). Institutional dimensions of payments for ecosystem services: An analysis of Mexico’s carbon forestry programme. Ecological Economics. http://www.sciencedirect.com/science/article/pii/S0921800908002632. Accessed 21 September 2016.
- Dixit, A., Upadhya, M., Dixit, K., Pokhrel, A., & Rai, D. R. (2009). Living with water stress in the hills of the Koshi basin—Google Scholar. Kathmandu: ICIMOD.Google Scholar
- DWSS. (2014). Initial environmental examination: Second small towns water supply and sanitation sector project-Dhankuta town project. Kathmandu: DWSS.Google Scholar
- Fauzi, A., & Anna, Z. (2013). The complexity of the institution of payment for environmental services: A case study of two Indonesian PES schemes. Ecosystem Services, 6, 54–63. http://www.sciencedirect.com/science/article/pii/S2212041613000508. Accessed 8 September 2016.
- Goldman-Benner, R., Benitez, S., & Boucher, T. (2012). Water funds and payments for ecosystem services: Practice learns from theory and theory can learn from practice. Oryx. http://search.proquest.com/openview/d3f772d6ea3ce0f806ccee95c1f99b15/1?pq-origsite=gscholar. Accessed 21 September 2016.
- Government of Nepal. (1999). Local Self-Governance Act 2055 (1999). Kathmandu, Nepal.Google Scholar
- Grima, N., Singh, S., Smetschka, B., & Ringhofer, L. (2016). Payment for ecosystem services (PES) in Latin America: Analysing the performance of 40 case studies. Ecosystem Services. http://www.sciencedirect.com/science/article/pii/S2212041615300607. Accessed 26 September 2016.
- Hejnowicz, A., Raffaelli, D., Rudd, M., & White, P. (2014). Evaluating the outcomes of payments for ecosystem services programmes using a capital asset framework. Ecosystem Services. http://www.sciencedirect.com/science/article/pii/S2212041614000382. Accessed 26 September 2016.
- Jack, B., Kousky, C., & Sims, K. (2008). Designing payments for ecosystem services: Lessons from previous experience with incentive-based mechanisms. Proceedings of the. http://www.pnas.org/content/105/28/9465.short. Accessed 26 September 2016.
- Mátyás, C., & Sun, G. (2014). Forests in a water limited world under climate change. Environmental Research Letters, 9(8), 85001. http://iopscience.iop.org/article/10.1088/1748-9326/9/8/085001/meta. Accessed 7 September 2016.
- MoFSC. (2014). Rate analysis for development activities related to forest, plants, wildlife and soil conservation—norms 2014. Kathmandu.Google Scholar
- Rai, R. K., & Scarborough, H. (2013). Economic value of mitigation of plant invaders in a subsistence economy: incorporating labour as a mode of payment. Environment and Development Economics, 18(2), 225–244. http://journals.cambridge.org/abstract_S1355770X1200037X. Accessed 30 August 2016.
- Rai, R. K., Shyamsundar, P., & Bhatta, L. (2016). Designing a payment for ecosystem services scheme for the Sardukhola watershed in Nepal (No. 108–16). SANDEE working paper. http://www.sandeeonline.org/uploads/documents/publication/1087_PUB_Working_Paper_108_Rajesh_Rai.pdf. Accessed 6 September 2016.
- Rawlins, M., & Westby, L. (2013). Community participation in payment for ecosystem services design and implementation: an example from Trinidad. Ecosystem Services, 6, 117–121. http://www.sciencedirect.com/science/article/pii/S2212041613000752. Accessed 7 September 2016.
- Schomers, S., & Matzdorf, B. (2013). Payments for ecosystem services: A review and comparison of developing and industrialized countries. Ecosystem Services, 6, 16–30. http://www.sciencedirect.com/science/article/pii/S221204161300003X. Accessed 21 September 2016.
- Wunder, S. (2005). Payments for environmental services: Some nuts and bolts (Vol. 42). Jakarta: CIFOR.Google Scholar