Payments For Environmental Services In Vietnam: Assessing An Economic Approach To Sustainable Forest Management

This study looks at whether Vietnam could adopt the Payment for Environmental Services (PES) approach as part of its national conservation strategy. Using a pilot study in the country’s uplands, it investigates how such a scheme might run and assesses its impact on the environment and on the local people’s livelihoods. Through a review of current Vietnamese conservation practice, it assesses the barriers to the adoption of such schemes and the factors that might encourage their implementation....
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Payments For Environmental Services In Vietnam: Assessing An Economic Approach To Sustainable Forest Management Payments for Environmental Services in Vietnam:Assessing an Economic Approach to Sustainable Forest Management Bui Dung The Hong Bich Ngoc August 2006Comments should be sent to: Bui Dung The Chair, Department of Agricultural and Environmental Economics,College of Economics, Hue University, 100 Phung Hung, Hue City, Vietnam. Email:buidungthe@dng.vnn.vn; buidungthe@yahoo.com Hong Bich Ngoc, Lecturer, Faculty of Forestry, College of Agriculture andForestry, Hue University, 102 Phung Hung, Hue City, Vietnam. Email:hongbichngoc@hotmail.comEEPSEA was established in May 1993 to support research and training in environmentaland resource economics. Its objective is to enhance local capacity to undertake theeconomic analysis of environmental problems and policies. It uses a networking approach,involving courses, meetings, technical support, access to literature and opportunities forcomparative research. Member countries are Thailand, Malaysia, Indonesia, thePhilippines, Vietnam, Cambodia, Lao PDR, China, Papua New Guinea and Sri Lanka.EEPSEA is supported by the International Development Research Centre (IDRC); theSwedish International Development Cooperation Agency (Sida); and the CanadianInternational Development Agency (CIDA).EEPSEA publications are also available online at http://www.eepsea.org. ii ACKNOWLEDGEMENTS The authors would like to thank the following individuals and institutions thatassisted in the preparation of this study: The Economy and Environment Program for Southeast Asia (EEPSEA), especiallyDr. David Glover, Dr. Herminia A. Francisco, Dr. Nancy Olewiler, Dr. Paul J. Ferraro andDr. Wiktor L. Adamowicz for their invaluable guidance, comments and suggestions duringall phases of the study. Dr. Nguyen Van Phat, Rector of the College of Economics, Hue University foradministrative arrangements and the research team, especially Mr. Pham Xuan Hung andMr. Le Trong Thuc for their cooperation in undertaking research activities. The staff of the Department of Agricultural and Rural Development, Thua ThienHue Province and the Agricultural Office of Nam Dong district for their institutionalarrangements and support in collecting much-needed data and information. The people of the communes of Khe Tre, Huong Phu and Xuan Loc of the provinceof Thua Thien Hue especially the farmers who joined the experiment for their support andcooperation. Other institutions and individuals who provided assistance in the implementation ofthis study. iii TABLE OF CONTENTACRONYMS .....................................................................................................................................................ivABSTRACT ........................................................................................................................................................v1.0 INTRODUCTION.........................................................................................................................................1 1.1 The Research Problem .................................................................................... 1 1.2 Research Objectives and Research Questions ................................................ 2 1.2.1 Research Objectives............................................................................... 2 1.2.2 Research Questions ................................................................................ 22.0 LITERATURE REVIEW..............................................................................................................................3 2.1 Payments for Environmental Services ................................................................ 3 2.2 Environmental Services....................................................................................... 4 2.3 Challenges and Issues in the Design and Implementation of PES ...................... 5 2.4 World Wide PES Experience .............................................................................. 73.0 PES CONTEXT IN VIETNAM....................................................................................................................8 3.1 Forest Resources....................................................................... ...