Effects of payments for ecosystem services programs in China on rural household labor allocation and land use: Identifying complex pathways

Payments for Ecosystem Services (PES) is increasingly used in developing countries to secure the sustainable provision of vital ecosystem services. The largest PES programs in the world are embedded in China’s new forest policies, which aim to expand forest cover for soil and water conservation and improve livelihoods of rural people. The objective of this study is to identify the complex pathways of the impacts of two PES programs , the Conversion of Cropland to Forest Program (CCFP) and the Ecological Welfare Forest Program (EWFP), on household livelihood decisions, and to quantify the direct and indirect impacts along the identified pathways. We fulfill this objective by developing an integrated conceptual framework and applying a Partial Least Squares-Structural Equation Model (PLS-SEM), based on household survey data from Anhui, China. Labor allocation (for on-farm work, local paid work, local business, or out-migration) and land use decisions (i.e., rent in, maintain, rent out, or abandon cropland) for participating households are key to understand PES program effects on livelihoods. Results show that the PES programs have only small direct effects but significant indirect effects via the mediating factor of capital assets. Moreover, group heterogeneity analysis shows that lower-income households do not benefit more than the better-off households from the PES programs, while households with medium wealth increase dependence on agriculture. In addition, household demographics, individual attributes, and geographic settings differ in their impacts on labor allocation and land use decisions. We conclude that CCFP and EWFP would be more efficient in conserving the environment while improving the economic welfare of lower-income households if capital assets were taken into account in the design of compensation schemes.     

Notions of justice in payments for ecosystem services: Insights from China's Sloping Land Conversion Program in Yunnan Province

China's Sloping Land Conversion Program (SLCP) pays millions of farmers to convert cropland in upper watersheds to tree plantations. It is considered one of the world's largest payments for ecosystem services (PES) scheme for its reliance on financial incentives. This paper examines the outcomes of the SLCP by way of a case study from the Yangliu watershed in Yunnan province. It focuses on the notions of justice embedded in state policy and held by villagers and local state officials in order to understand the observed outcomes in terms of people's participation in the implementation of the SLCP, land use changes and livelihood effects. Villagers, local state officials, and state policy share a primary concern about distributive justice despite significant differences in their specific notions. The shared concern underlies the villagers’ positive reactions to the SLCP, which among other factors, have led to the intended expansion of tree plantations and a livelihood transition in Yangliu since 2003. The insights from Yangliu suggest the need to consider justice for a fuller understanding of the dynamics and outcomes of the SLCP and other PES schemes worldwide as the notions of justice applied by the involved actors may influence land use and livelihood dynamics in addition to the other factors considered in research this far.     

Impact of local payments for ecosystem services on land use in a developed area of China: A qualitative analysis based on an integrated conceptual framework

Payments for ecosystem services (PES) have increasingly been applied as economic incentives for improving ecosystem services around the world. However, due to difficulties in measuring and attributing ecosystem services provisioning, a land-based approach has been popularly adopted as a proxy for the desired ecosystem services. In this study, we demonstrate the impact mechanism and outcomes of locally financed PES programs on conservation-based land use in a developed area of China. We present this work using a PES-land use proxy framework that is examined empirically through a variety of qualitative assessments. Our framework illustrates that, within the ecological, socioeconomic, and institutional conditions of developed areas, land use class, pattern and function would be impacted by (a) conservation effect, (b) stakeholder response, and (c) institutional adaptation mechanisms of local PES programs, with multiple land use trends as potential outcomes. We examine the framework using materials from Suzhou, China, which has implemented a top-down, partly involuntary (ecosystem services supply side), land based PES program. Our results show that, expected land use class, land use pattern and land use function are observed in areas where the PES programs were implemented. We also find that the conditions of developed areas and locally financed payments mechanism indeed played a crucial role in promoting conservation-based land use in Suzhou.