Home

>

Welfare and Environmental Impact of Incentive Based Conservation: Evidence from Kenyan Community Forest Associations

This paper focuses on whether the provision of landless forest-adjacent communities with options to grow appropriate food crops inside forest reserves during early stages of reforestation programmes enable vertical transition of low income households and conserves forests. We consider the welfare and environmental impact of a unique incentive scheme known as the Plantation Establishment and Livelihood Improvement Scheme (PELIS) in Kenya. PELIS was aimed at deepening community participation in forestry, and improving the economic livelihoods of adjacent communities. Using data collected from 22 Community Forest Associations and 406 households, we evaluated the mean impact of the scheme on forest cover and household welfare using matching methods and further assessed the heterogeneous impact of the scheme on household welfare using the endogenous quantile treatment effects model. The study revealed that on average, PELIS had a significant and positive impact on overall household welfare (estimated between 15.09% and 28.14%) and on the environment (between 5.53% and 7.94%). However, in terms of welfare, the scheme cannot be defended on equity grounds as it has inequitable distributional impacts on household welfare. The scheme raises welfare of the least poor than the poorest and marginalizes sections of the community through elite capture and lack of market linkages.
Working paper 706
1 August 2017
SHARE THIS Working Paper PUBLICATION:
30 August 2017
Publication Type: Working Paper
Economic Theme: Public Finance
JEL Code: D02, I28, Q23

Related South Africa’s Cities and Growth Spatial Challenges and Policy Interventions Content

Request for Proposals: The role of cities as drivers of growth and employment
Background Urbanization in South Africa is expected to reach 80% by...
Call for Work
South Africa’s future will be decided in our cities
Discussion Document 14 South Africa’s cities face multiple, overlap...
Dieter von Fintel, Justin Visagie, Ivan Turok, Takwanisa Machemedze, Claus Rabe, Sebastian Galiani, Edward Glaeser
Discussion Document
Monitoring South Africa’s metropolitan economies: A survey of the data landscape
Discussion Document 13 Disparities in data across different metropo...
Dieter von Fintel
Discussion Document
Cities, productivity and Jobs in SA: Problems and potential
Discussion Document 12 Cities contribute to national prosperity bec...
Ivan Turok, Justin Visagie
Discussion Document
Place-based economic policies: international lessons for South Africa
Discussion Document 11 Place-based policies are designed to support...
Harris Selod, Claus Rabe
Discussion Document
What luminosity data can and cannot reveal about South Africa’s urban economies
Discussion Document 10 As novel types of data are becoming availabl...
Takwanisa Machemedze
Discussion Document
Crime: A policy-oriented survey
Discussion Document 9 South Africa has a reputation for having high...
Sebastian Galiani
Discussion Document
Virtual CDE Workshop on SA Cities and Growth
Urban economics has provided powerful insights into how the charact...
Workshop

Search Resources

Ground Floor Brookside Building
11 Imam Haron Road
Claremont, 7700
Cape Town

PostNet Suite # 109
Private Bag X1005
Claremont 7735
Cape Town

Get Social