DETERMINANTS OF PARTICIPATION AND ACCEPTANCE FOR PAYMENTS FOR ENVIRONMENTAL SERVICES: A CASE STUDY IN BRAZIL

ABSTRACT This study estimates the probability of rural producers participating and accepting payments from a program of Payment for Environmental Services (PES) in the Paraíba do Sul river basin, Brazil, for productive conversion activities and conservation and regeneration of forestland, based on a survey with the potential providers. The identification strategy estimates the probability functions of participating in the PES program and of accepting the payment conditioned to economic factors and perceptions with factorial analysis techniques and econometric models in one and two stages. The results show that adherence to PSA programs is influenced not only by factors relating to the financial opportunity cost for adopting new activities, but mainly by factors relating to prior knowledge of the providers on technical issues relating to the program and their perceptions on risks and uncertainty regarding of the effort level required to adopt the program.