Paying for the Hydrological Services of Mexico´s Forests

15 junio 2007

The Payment for Hydrological Environmental Services Program was designed by the federal government to pay participating forest owners for the benefits of watershed protection and aquifer recharge in those areas where commercial forestry is not currently competitive.

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Paying for the Hydrological Services of Mexico´s Forests

 

Abstract

Mexico faces both high deforestation rates and severe water scarcity problems. The Payment for Hydrological Environmental Services Program was designed by the federal government to pay participating forest owners for the benefits of watershed protection and aquifer recharge in those areas where commercial forestry is not currently competitive. It seeks to complement an array of forest policies that include development of community forestry firms and prohibitions of land use changes. Funding comes from a fee charged to federal water users, from which nearly $18 million USD are earmarked for the payment of environmental services.

Applicants are selected according to several criteria that include indicators of the value of water scarcity in the region. This paper describes the process of policy design, main actors and rules, and provides a preliminary evaluation.

One of the main findings is that the program has paid where deforestation risk is low. The policy recommendation given is that selection criteria need to be modified so benefits to water users are maximized, otherwise the program will just be a partial redistribution of property rights over environmental services, increasing equity, but without bringing a Pareto improvement in overall welfare.

Para leer el documento completo (en inglés), por favor, descargue el archivo en formato pdf.

Sitio Web (URL): http://www.ine.gob.mx/dgipea/download/draft_ecological_economics.pdf

Autor(es): Carlos Múñoz-Piña, Alejandro Guevara, Juan Manuel torres, Josefina Braña

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