The Potential of Agro-Ecosystems Payments for Ecosystem Services to Provide Ecosystem ...

313 Pages·2016·4.79 MB·English

The Potential of Agro-Ecosystems Payments for Ecosystem
Services to Provide Ecosystem Services and Poverty
Reduction in Developing Countries: A Case Study of the
EPWS Program in Tanzania

Emmanuel Jonas Kwayu

Submitted in accordance with the requirements for the degree of Doctor
of Philosophy

University of Leeds
School of Earth & Environment
September, 2016
The candidate confirms that the work submitted is his own, except where
work which has formed part of jointly-authored publications has been
included. The contribution of the candidate and the other authors to his work
has been explicitly indicated below. The candidate confirms that appropriate
credit has been given where reference has been made to the work of others.

This copy has been supplied on the understanding that it is copyright material
and that no quotation from the thesis may be published without proper
acknowledgement.

@ 2016 University of Leeds and Emmanuel Jonas Kwayu
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Chapter 4 is based on article published as:

Kwayu, E. J., S. M. Sallu and J. Paavola (2014), “Farmer participation in the
equitable payments for watershed services in Morogoro, Tanzania”.
Ecosystem Services, Available online:
http://www.sciencedirect.com/science/article/pii/S2212041613001034).

Chapter 5 is based on article under review as:

Kwayu, E. J., S. M. Sallu and J. Paavola (2016), “Livelihood Contribution of a
PES Scheme for Sustainable Land Management in Morogoro, Tanzania”
(submitted to the Journal of Environmental and Development Economics)

All the above manuscripts constitute an important part of my thesis. I am lead
author on these articles as they represent the publications generated from
PhD studies. Consequently, I use my own collected data, empirical results
and analysis. The articles are co-authored with my supervisors whose role
was in the recommendation of revisions and edits to these articles.
ii

Acknowledgements
I would like to firstly acknowledge the generous funding of STEP through Dar
es Salaam University College of Education (DUCE), without which this PhD
studentship would have been impossible.

Secondly, for their priceless support, feedback and encouragement, I
sincerely thank “YOU” my supervisors Susannah Sallu and Jouni Paavola.
To all of the many people, including Michelle Lesnianski, I need to stress the
value of your support, which is highly acknowledged. “Thank you all”.

Finally, I am thankful to Almighty God and my family who are always with me
in good and awful days.
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Abstract
This thesis investigates the effectiveness of agro-ecosystem based PES
programs to provide ecosystem services and achieve poverty reduction. A
case study from Tanzania known as the “equitable payments for watershed
services (EPWS) program” piloted between 2008 and 2012 in Morogoro
region has been used as the basis for an in-depth empirical study of an agro-
ecosystem based PES program. The case-study approach has combined
mixed methods quasi experimental research design and propensity score
matching technique to prioritise attribution of the livelihood and environmental
outcomes of the intervention, which remain under-utilized in evaluation of
conservation interventions.

The thesis findings provide insights that while the poor can participate in
agro-ecosystem PES programs, their participation can be hindered by initial
investment costs of inputs such as on manure, improved seeds, hoes and
spades. Farm size, farmers’ access to information, participation in the design
phase, and the change in farm management required by the program are
significant determinants of program participation. Also, while PES payments
contribute to local livelihoods, the indirect financial and non-financial benefits
provide greatest contributions to livelihoods. In relation to additionality
impact, program participation increases the number of sustainable land
management practices and land under agro-forestry and reforestation
amongst program participants. Furthermore, expected benefits such as crop
yields from constructed terraces and manure, fire wood and timber products
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from agro-forestry and afforestation interventions are likely to increase the life
span of the practices.

The design of agro-ecosystem PES programs should include upfront
payments in addition to other incentives which should be made timely in
phases to ensure compliance. Local training and paraprofessional, external
training and both enhancement of local formal and informal rules are
essential to enhance the adoption of practices and to stop illegal activities
such as forest reserve encroachment, illegal logging and fire.

Keywords: quasi-experiment; propensity score matching; ecosystem
services, payments for ecosystem services (PES); forest, agricultural based
PES program, participation, livelihoods; agriculture; sustainable land
management; water; Tanzania, Africa
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Table of Contents
Acknowledgements ..................................................................................... ii
Abstract ...................................................................................................... iii
List of Figures .............................................................................................. x
List of Tables ............................................................................................ xiv
Chapter 1: Introduction ............................................................................... 1
1.1 Background ......................................................................................... 1
1.2 The Specific Objectives of the Thesis ................................................. 6
1.3 Thesis Structure .................................................................................. 7
Chapter 2: Literature Review .................................................................... 10
2.1 Chapter Outline ................................................................................. 10
2.2 Ecosystem Services Concept ............................................................ 11
2.3 Payments for Ecosystem Services .................................................... 16
2.3.1 The Basic Principle of PES ........................................................ 16
2.3.2 Critique of PES .......................................................................... 22
2.3.3 PES in Context ........................................................................... 23
2.3.4 Implementation of PES Programs .............................................. 26
2.3.5 PES and Livelihoods and Poverty .............................................. 37
2.3.6 Development of PWS Programs in Africa .................................. 40
2.4 Evaluating Payments for Environmental Services ............................. 48
2.5 Synthesis and Conclusions ............................................................... 52
Chapter 3: Research Design, Methods and Study Site ........................... 56
3.1 Chapter Outline ................................................................................. 56
3.2 Research Design ............................................................................... 57
3.2.1 Case Study Approach ................................................................ 57
3.2.2 Selection of the Study Site ......................................................... 58
3.2.3 Evaluating the Effectiveness of the EPWS Program .................. 59
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3.3 Research Methods ............................................................................. 68
3.3.1 Mixed Method Approach ............................................................. 68
3.3.2 Data Collection ........................................................................... 69
3.3.3 Research Phases ....................................................................... 70
3.3.4 Household Survey ...................................................................... 72
3.3.5 Wealth Ranking .......................................................................... 73
3.3.6 Sampling ..................................................................................... 75
3.3.7 Interview Procedure .................................................................... 77
3.3.8 Semi-structured Key Informant Interviews .................................. 78
3.3.9 Focus Group Discussions ........................................................... 78
3.3.10 Fieldwork Observations ........................................................... 79
3.3.11 Field Experience ..................................................................... 79
3.4 Data Analysis ..................................................................................... 83
3.4.1 Quantitative Data ........................................................................ 83
3.4.2 Qualitative Data .......................................................................... 84
3.5 Study site ........................................................................................... 85
3.5.1 The Uluguru Mountains – Location ............................................. 85
3.5.2 The Climate of the Region .......................................................... 87
3.5.3 Biodiversity ................................................................................. 88
3.5.4 The Importance of the Uluguru Mountains for Water .................. 89
3.5.5 The Status of the Forests in the Uluguru Mountains ................... 91
3.5.6 Agricultural Practices in the Uluguru Mountains ......................... 95
3.5.7 Land Access and Tenure ............................................................ 98
3.5.8 Conservation Practices in the Uluguru Mountains .................... 101
3.5.9 The EPWS Program ................................................................. 104
3.5.9.1 Implementation of the EPWS Program .............................. 107
3.5.9.2 Payment Arrangements and Modalities ............................. 114
3.5.10 Livelihood Patterns in the Case study Villages...................... 117
3.5.10.1 Land Ownership ................................................................ 117
3.5.10.2 Housing Condition ............................................................. 120
3.5.10.3 Education and Social Services .......................................... 121
3.5.10.4 Sources of Livelihood ........................................................ 124
3.5.10.5 Household Asset Wealth ................................................... 125
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3.5.10.6 Gender and Relative Wealth ............................................. 127
3.6 The Propensity Score Matching and the Implementation ................ 129
3.7 Conclusions ..................................................................................... 135
Chapter 4: Farmer Participation in the Equitable Payments for
Watershed Services in Morogoro, Tanzania .......................................... 136
4.1 Chapter Outline ............................................................................... 136
4.2 Introduction ..................................................................................... 136
4.3 Material and Methods ...................................................................... 140
4.4 Results ............................................................................................ 147
4.5 Discussion ....................................................................................... 156
4.6 Conclusion ...................................................................................... 160
Chapter 5: The Livelihood Outcomes of the EPWS Programme ......... 162
5.1 Chapter Outline ............................................................................... 162
5.2 Introduction ..................................................................................... 162
5.3 Material and Methods ...................................................................... 167
5.4 Results ............................................................................................ 168
5.4.1 Direct and Indirect Financial and Non-financial Benefits .......... 168
5.4.1.1 Direct and Indirect Financial Benefits ................................ 168
5.4.1.2 Indirect Non-financial Outcomes ....................................... 177
5.4.2 Distribution of EPWS Program Outcomes ................................ 182
5.4.2.1 Distribution of Outcomes According to the Household’s
Wealth Quartile ............................................................................... 182
5.4.2.2 Distribution of Outcomes According to the Gender of the
Household ....................................................................................... 185
5.5 Discussion ....................................................................................... 188
5.5.1 Direct and Indirect Financial and Non-financial Benefits .......... 188
5.5.2 Distribution of EPWS Program Outcomes ................................ 193
5.6 Conclusion ...................................................................................... 195
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Chapter 6: The Effectiveness of the EPWS Program to Increase Water
Quantity and Quality Supply Downstream. ............................................ 198
6.1 Chapter Outline ................................................................................ 198
6.2 Introduction ...................................................................................... 198
6.3 The Effectiveness of PES Programs to Deliver Ecosystem Services ....
......................................................................................................... 200
6.4 Challenges of Evaluating Conservation Interventions - PES ........... 204
6.5 Assessing Effectiveness in Conservation ........................................ 206
6.6 Materials and Methods ..................................................................... 208
6.7 Results ............................................................................................. 212
6.7.1 Estimates of the Program Additionality Effects ......................... 212
6.7.2 Leakage Impacts of the EPWS Program .................................. 216
6.7.3 Permanence ............................................................................. 218
6.7.4 Cost Effectiveness - Transaction and Opportunity Costs .......... 220
6.8 Discussion ....................................................................................... 223
6.9 Conclusion ....................................................................................... 229
Chapter 7: Discussion .............................................................................. 231
7.1 Introduction ...................................................................................... 231
7.2 Methodological Reflections .............................................................. 233
7.3 Summary of Findings ....................................................................... 236
7.4 Synthesis of Findings Across Result Chapters ................................ 238
7.4.1 Revisiting Objective one: to Examine Participation and the
Factors which Determine Participation Decision in the EPWS Program. ..
.................................................................................................. 239
7.4.2 Revisiting Objective Two: to Evaluate the Livelihood Outcomes of
the EPWS Program on Program Participants Compared to Non-
participants. ......................................................................................... 244
7.4.3 Revisiting Objective Three: to Evaluate the Effectiveness of the
EPWS Program in Terms of its Additionality and Leakage Effects as well