Exploring Environmental Services Incentive Policies for the Philippines Rice Sector: The Case of Intra-Species Agrobiodiversity Conservation
This chapter considers a hypothetical scheme of green payments to induce intra-specific agrobiodiversity in the context of Philippine rice farming. We empirically estimate a model of farmer behavior and then simulate the consequences of alternative (hypothetical) PES schemes under a fixed budget constraint. We find that, under this particular application, there is a clear trade-off between the two policy goals of enhancing agrobiodiversity and poverty reduction. Even the totally untargeted lump-sum subsidy would have a larger poverty reduction impact than would the first-best conservation subsidy payment scheme. Therefore, policymakers would be required to strike a delicate balance between the two competing policy objectives. In addition, there is also a clear trade-off between the efficiency of targeted conservation payment and the information requirement for implementing subsidy schemes.
KeywordsRice Variety Poverty Reduction Payment Scheme Modern Variety Traditional Variety
The authors would thank Ms. Aileen Lapitan for her insights on the data set; Ms. Marjorie Ann L. Dator, Ms. Dieldre S. Harder, and Ms. Jocelyn T. Tabali for their research assistance; and the DAR-UPLB Comprehensive Agrarian Reform Program Impact Assessment Project for the data set used in this study.
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