Table 1
Action sites for testing reward mechanisms.
| Site | Focus of ES | Current status |
|---|---|---|
| Indonesia | ||
| Bungo | Jungle rubber for conservation of the diversity of local plant species and wildlife habitat | • Testing mini hydropower as intermediate reward for biodiversity conservation • A private buyer (automotive wheel industry) showing interests for rubber for “green” vehicles |
| Singkarak | • Water quality for hydropower, native fish conservation and ecotourism • Carbon sequestration for voluntary markets under CDM setting | • Conservation fund from local government to revitalize organic coffee in the upstream watershed • Carbon market negotiated with private buyer (consumer goods distributor) |
| Sumberjaya | • Water quality for hydropower • Watershed rehabilitation for the District Forestry Service | • Conditional tenure rewarded to farmer groups • Hydroelectric Power company (HEP) royalty agreements signed for River Care groups along the river |
| The Philippines | ||
| Bakun | Water quality for hydropower | HEP royalty agreements signed |
| Kalahan | Carbon sequestration under voluntary market | Carbon market initial agreement with private buyer (automotive industry) |
| Nepal | ||
| Kulekhani | Water quality for hydropower | HEP royalty agreements signed |
Table 2
Sample respondents representing the households of environmental service providers at each site.
| Sites | Targeted respondents | Number of respondents | Percentage of households | |
|---|---|---|---|---|
| Indonesia | ||||
| Bathin III Ulu, Bungo | Five groups in sub-villages at jungle rubber locations | 90 | 28 | |
| Paninggahan, Singkarak | Eight groups in two Nagari or village levels | 80 | 43 | |
| Sumberjaya | Three community groups: | 103 | 27 | |
| 1) two community forestry groups; | ||||
| 2) one River Care group; | ||||
| 3) one land conservation group | ||||
| The Philippines | ||||
| Bakun | Three main clusters based on elevation: | 124 | 39 | |
| 1) lower (1 barangay or village); | ||||
| 2) middle (4 barangays); and | ||||
| 3) upper (2 barangays) | ||||
| Kalahan Ancestral Domain | Two community groups based on elevation: | 40 | 27 | |
| 1) high elevation – (3 barangays); and | ||||
| 2) low elevation – (4 barangays) | ||||
| Nepal | ||||
| Kulekhani | Seven village development committees or VDCs | 97 | 78 | |
| Total | 534 | 36 |
Table 3
Downstream/upstream ratios of population density and areas covered by agroecosystem combinations found in Indonesia (adapted from Hadi and Noordwijk 2005).
| Population Density | Area | Factor (Population | |
|---|---|---|---|
| Pd Pu–1 | Ad Au–1 | Density × Area) | |
| Lowland: rice/urban; | 1.6 | 0.36 | 0.58 |
| Upland: intensive mixed | |||
| Lowland: rice/urban; | 11 | 0.06 | 0.66 |
| Upland: forest | |||
| Lowland: intensive mixed; | 6 | 0.26 | 1.56 |
| Upland: forest | |||
| Lowland: tree crop mixed; | 0.6 | 0.56 | 0.34 |
| Upland: intensive mixed plantation | |||
| Lowland: tree crop mixed; | 3.6 | 0.79 | 2.84 |
| Upland: forest |
Table 4
Ratio of downstream/upstream population density in agroecosystem combinations that occur in various areas of Indonesia (adapted from Hadi and Noordwijk 2005).
| Population density ratio | Jawa/Bali | Sumatra | Sulawesi | Kalimantan | NTT/ NTB/ | Papua |
|---|---|---|---|---|---|---|
| (down stream/upstream) | Maluku | |||||
| Downstream: rice/urban; | 2.2 | 0.6 | 1.8 | – | – | – |
| Upstream: intensive | ||||||
| mixed crops | ||||||
| Downstream: rice/urban; | – | 6.4 | – | – | 20.0 | 6.8 |
| Upstream: forest | ||||||
| Downstream: intensive mixed; | – | 3.7 | 6.3 | 5.8 | 8.0 | |
| Upstream: forest | ||||||
| Downstream: tree crop mixed; | – | 0.7 | 0.6 | – | – | |
| Upstream: intensive mixed | ||||||
| plantation | ||||||
| Downstream: tree crop mixed; | – | 2.5 | 4.6 | – | – | |
| Upstream: forest |
Table 6
Outcomes from different scenarios on area, population density and welfare.
| Scenario | Ad.Au–1 | Id.Iu–1 | Pd. Pu–1 | βd. | T | αu | TPu |
|---|---|---|---|---|---|---|---|
| Default | 1 | 2 | 2 | 0.01 | 0.3 | 0.5 | 0.0140 |
| ES providers occupied large area | 0.2 | 2 | 2 | 0.01 | 0.3 | 0.5 | 0.0028 |
| ES buyers occupied large area | 4 | 2 | 2 | 0.01 | 0.3 | 0.5 | 0.0560* |
| Poor downstream buyers | 1 | 0.5 | 2 | 0.01 | 0.3 | 0.5 | 0.0035 |
| Rich downstream buyers | 1 | 5 | 2 | 0.01 | 0.3 | 0.5 | 0.0350 |
| Highly populated upstream area | 1 | 2 | 0.75 | 0.01 | 0.3 | 0.5 | 0.0053 |
| Highly populated downstream area | 1 | 2 | 10 | 0.01 | 0.3 | 0.5 | 0.0700* |
| Low willingness and ability to pay of buyers | 1 | 2 | 2 | 0.003 | 0.3 | 0.5 | 0.0042 |
| High willingness and ability to pay of buyers | 1 | 2 | 2 | 0.05 | 0.3 | 0.5 | 0.0700* |
[i] Note: *indicating that such scenarios have potential for downstream–upstream ES transactions.
Table 7
Local perspectives on factors contributing to poverty.
| Capital/Site | Bungo | Singkarak | Sumberjaya | Bakun | Kalahan | Kulekhani |
|---|---|---|---|---|---|---|
| Financial | Low income | Low income | Low income | Low income | Low income | Low income |
| Lack of financial investment | Lack of financial investment | No financial planning | ||||
| No savings | ||||||
| Low prices of farm products | ||||||
| Physical | Poor road infrastructure | Not mentioned | Poor living condition | Poor living condition Poor access to road | Lack of farm irrigation and farm inputs (fertilizer, good quality seed) Small number of livestock Poor access to road | Poor living condition Poor road infrastructure No access to market |
| Human | Lack of knowledge Laziness Lack of future planning Lack of creativity Poor health services | Low education level | Low education level Poor nutrition status No access to job market Poor access to children education Poor health services | Low education level Laziness Unmotivated and bad working attitude | Low education level Laziness | Low education level No access to job market Poor health services Insecure food supply Large family size |
| Natural | Small land size Disturbance of pests and disease to rubber plantation | Not mentioned | No access to good quality of land | Small land size | Small land size | Small land size |
| Social | Not mentioned | Insecure land ownership | Low social participation | Not mentioned | Not mentioned | Not mentioned |
Table 8
Local perspective of constraints at each RES development stage.
| Stages/Site | Bungo | Singkarak | Sumberjaya | Bakun | Kalahan | Kulekhani |
|---|---|---|---|---|---|---|
| Scoping | Not mentioned | Limited land size to provide ES | Not mentioned | Lack of information about types of land management practices | Not mentioned | Not mentioned |
| Stakeholder analysis | Difficult to identify (international) buyers | Not mentioned | Weak local institutions | Not mentioned | Individual rights/local equity | Not mentioned |
| Ensuring transparency of decision | ||||||
| Negotiation | Lengthy and cumbersome | Lengthy and cumbersome Unbalanced power of negotiation, low capability of sellers to negotiate | Conflict existing with potential buyers Time consuming Limited funding from buyers | Unsure that rewards will flow back to the community | Asymmetric information available between sellers and buyers Unclear negotiation rules | Potential risk that the poor's concerns neglected Lengthy and cumbersome |
| Monitoring and implementation | Difficult to monitor ES | Not mentioned | Not mentioned | Not mentioned | Payment not sustainable | Not mentioned |
Table 9
Expected environmental service rewards by locals.
| Capital/Site | Bungo | Singkarak | Sumberjaya | Bakun | Kalahan | Kulekhani |
|---|---|---|---|---|---|---|
| Financial | Not mentioned | Not mentioned | Cash | Not mentioned | Financial assistance | Not mentioned |
| Non-direct financial | Cooperative for credit access | Reduction in electricity bill | Access to soft loans | Reduction in electricity bill | Access to soft loan | Reduction in electricity bill |
| Forming of a farmer cooperative | ||||||
| Physical | Micro-hydropower | Farming tools | Road infrastructure | Road infrastructure | Road infrastructure | Road infrastructure |
| Supply of rubber seedlings | Road infrastructure | Access to market | Access to market | |||
| Road infrastructure | ||||||
| Integrated pest management tools | ||||||
| Human | Training and cross-site visit | Trainings for alternative small business | Agricultural extension Information on agricultural technology Access to labour market | Health services Access to labour market Educational services Trainings for alternative small business | Public services | Trainings for alternative small business, such as ecotourism management and non-timber forest product |
| Natural | Not mentioned | Not mentioned | Not mentioned | Not mentioned | Not mentioned | Not mentioned |
| Social | Recognition as environmental champion | Recognition as environmental champion | Community forest permit | Security of land tenure | Trust from government (to maintain good environment) | Recognition as environmental champion |