EVALUATING EFFECTIVENESS OF PAYMENTS FOR FOREST ECOSYSTEM SERVICES BY PROPENSITY SCORES ANALYSIS

The Vietnamese Government have been implementing the Payment for Forest Ecosystem Service (PFES) since 2008 with the aim of both improving natural forest status and enhancing income for mountainous community. Yet, effectiveness of the PFES scheme is now debated because of the shortage of experiment...

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Main Authors: Hung Hoang Nguyen, Nguyen Tan Huynh
Format: Article
Language:English
Published: Naučno društvo agrarnih ekonomista Balkana, Beograd; Institut za ekonomiku poljoprivrede, Beograd i Akademija ekonomskih nauka, Bukurešt 2020-03-01
Series:Ekonomika Poljoprivrede (1979)
Subjects:
Online Access:https://www.ea.bg.ac.rs/index.php/EA/article/view/1696
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author Hung Hoang Nguyen
Nguyen Tan Huynh
author_facet Hung Hoang Nguyen
Nguyen Tan Huynh
author_sort Hung Hoang Nguyen
collection DOAJ
description The Vietnamese Government have been implementing the Payment for Forest Ecosystem Service (PFES) since 2008 with the aim of both improving natural forest status and enhancing income for mountainous community. Yet, effectiveness of the PFES scheme is now debated because of the shortage of experimental studies. So, the overall purpose of this study is to measure the effectiveness of the PFES program by propensity scores analysis. To do so, the study randomly surveyed 469 households located in four districts across Quang Nam province and then estimated the Average Treatment Effect on Treated (ATET). It is found that: (1) the households within PFES had got a insignificantly higher income than those without PES in the short-run; (2) yet, PFES was effective in long-run due to the improvement on income for participants; (3) PFES had an important role in increasing income inequality. Although this study demonstrated reasonable results, some limitations still exist due to the objective reasons, thus more studies with alternative methods should be conducted to confirm the results of this study for better policies. 
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publisher Naučno društvo agrarnih ekonomista Balkana, Beograd; Institut za ekonomiku poljoprivrede, Beograd i Akademija ekonomskih nauka, Bukurešt
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spelling doaj.art-94b219a5bb034c9aa015eefe4c3c1d972023-05-17T16:56:39ZengNaučno društvo agrarnih ekonomista Balkana, Beograd; Institut za ekonomiku poljoprivrede, Beograd i Akademija ekonomskih nauka, BukureštEkonomika Poljoprivrede (1979)0352-34622334-84532020-03-0167110.5937/ekoPolj2001087NEVALUATING EFFECTIVENESS OF PAYMENTS FOR FOREST ECOSYSTEM SERVICES BY PROPENSITY SCORES ANALYSISHung Hoang Nguyen0Nguyen Tan Huynh1PhD candidate, Dong Nai Technology University, Dong Nai Province, Viet NamPhD candidate, Dong Nai Technology University, Dong Nai Province The Vietnamese Government have been implementing the Payment for Forest Ecosystem Service (PFES) since 2008 with the aim of both improving natural forest status and enhancing income for mountainous community. Yet, effectiveness of the PFES scheme is now debated because of the shortage of experimental studies. So, the overall purpose of this study is to measure the effectiveness of the PFES program by propensity scores analysis. To do so, the study randomly surveyed 469 households located in four districts across Quang Nam province and then estimated the Average Treatment Effect on Treated (ATET). It is found that: (1) the households within PFES had got a insignificantly higher income than those without PES in the short-run; (2) yet, PFES was effective in long-run due to the improvement on income for participants; (3) PFES had an important role in increasing income inequality. Although this study demonstrated reasonable results, some limitations still exist due to the objective reasons, thus more studies with alternative methods should be conducted to confirm the results of this study for better policies.  https://www.ea.bg.ac.rs/index.php/EA/article/view/1696Propensity scorespayments for forest ecosystem servicesAverage Treatment Effect on TreatedAverage Treatment EffectDifference-to-differences approach
spellingShingle Hung Hoang Nguyen
Nguyen Tan Huynh
EVALUATING EFFECTIVENESS OF PAYMENTS FOR FOREST ECOSYSTEM SERVICES BY PROPENSITY SCORES ANALYSIS
Ekonomika Poljoprivrede (1979)
Propensity scores
payments for forest ecosystem services
Average Treatment Effect on Treated
Average Treatment Effect
Difference-to-differences approach
title EVALUATING EFFECTIVENESS OF PAYMENTS FOR FOREST ECOSYSTEM SERVICES BY PROPENSITY SCORES ANALYSIS
title_full EVALUATING EFFECTIVENESS OF PAYMENTS FOR FOREST ECOSYSTEM SERVICES BY PROPENSITY SCORES ANALYSIS
title_fullStr EVALUATING EFFECTIVENESS OF PAYMENTS FOR FOREST ECOSYSTEM SERVICES BY PROPENSITY SCORES ANALYSIS
title_full_unstemmed EVALUATING EFFECTIVENESS OF PAYMENTS FOR FOREST ECOSYSTEM SERVICES BY PROPENSITY SCORES ANALYSIS
title_short EVALUATING EFFECTIVENESS OF PAYMENTS FOR FOREST ECOSYSTEM SERVICES BY PROPENSITY SCORES ANALYSIS
title_sort evaluating effectiveness of payments for forest ecosystem services by propensity scores analysis
topic Propensity scores
payments for forest ecosystem services
Average Treatment Effect on Treated
Average Treatment Effect
Difference-to-differences approach
url https://www.ea.bg.ac.rs/index.php/EA/article/view/1696
work_keys_str_mv AT hunghoangnguyen evaluatingeffectivenessofpaymentsforforestecosystemservicesbypropensityscoresanalysis
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