1. Payment for Environmental Services can help reduce poverty if implemented with that goal in mind. Regulations would need to target poor participants and be carried out in a manner that is accessible and affordable for the poor. A detailed assessment must be done on the land that is subject to the PES program and the family and work force that lives off it. If this were the case, then yes, PES can help reduce poverty, but only in those specific areas that are poverty-stricken but contain viable land. A negative side effect of PES may be the decrease in land for agriculture and therefore an increase in food prices, which would affect those poor who were not viable for participation in the PES program. Therefore, PES could help a select group of poverty stricken people out of poverty but overall it seems more likely that it would have a negative effect on the majority of the poor.
2. Assuming a poverty stricken area is located on land that is eligible for PES, there are still many obstacles faced by the upstream service providers. They must assure that there is a secure tenure and investment needs are met. Many poor don’t have access to credit if investment needs are not readily met. After determining the profitability of the PES practice, the landowners must have the resources available, whether that means more labor or different tools, to alter their land use to that of the PES standards.
3. Socio-economic impacts of the PES program are associated with the implementation stage and land use change. In some cases, like in the prevention of deforestation rather than cultivation of land, less labor is needed from the local community. Thus, though PES may help one family out of poverty, it may do more damage than good on a local community. More obvious impacts include an increased income for the landowners and tenants, and payment by downstream service users who receive the services. The need for institutions to regulate PES implementation and payment may lead to better social organization and community capital potential.
