Understanding the impacts of Costa Ricaʹs PES: Are we asking the right questions?

PES is an increasingly mainstream tool for influencing land-use decisions on private land and Costa Ricaʹs experience provides critical insight. We review findings of PES impacts on forest cover, a proxy for forest-based ecosystem services. National studies conclude that PES has not lowered deforestation rates. Yet in northern Costa Rica, there is evidence of additionality for PES-related avoided deforestation. Moreover, sub-national studies of bi-directional forest cover change, along with farm-level interview data and an understanding of ground-based operations, demonstrate that avoided deforestation is an incomplete measure of PES impact. Sub-national case studies suggest PES is associated with agricultural abandonment and net gains in forest cover via forest regeneration and plantation establishment. Explanations include that forest regeneration has always been an accepted PES modality for some regions. Also, early PES cohorts have an implicit spatial correlation with pre-PES incentives focusing exclusively on reforestation. Without understanding de facto PES implementation, it is impossible to appropriately evaluate PES impacts or discern whether PES outcomes—positive or negative—are due to PES design or its implementation. This distinction is critical in refining our understanding of both the utility and limitations of PES and has some practical implications for PES-style REDD initiatives.