The profitability of forest protection versus logging and the role of payments for environmental services (PES) in the Reserva Forestal Golfo Dulce, Costa Rica

A static-comparative analysis was undertaken of the profitability of forest protection — when payments for environmental services (PES) were awarded — and logging for the years of 1999 and 2005. For both years it can be seen that if a landownerʹs main concern is profit maximization, logging is likely to be chosen over forest protection. Forest protection becomes an attractive alternative against logging when the annual award of PES matches the period of a second logging entry, 15 years. It is assessed that in the long run (15 years), for PES to become only marginally less profitable than logging their rate should be set around $75/ha/yr.