Forest conservation incentives and deforestation in the Ecuadorian Amazon

Forest conservation incentives are a popular approach to combatting tropical deforestation. Here we consider a case where direct economic incentives for forest conservation were offered to newly titled smallholders in a buffer zone of a protected area in the northeastern Ecuadorian Amazon. We used quasi-experimental impact evaluation methods to estimate changes in forest cover for 63 smallholders enrolled in Ecuador's Socio Bosque program compared to similar households that did not enroll. Focus group interviews in 15 communities provided insight into why landowners enrolled in the program and how land use is changing. The conservation incentives program reduced average annual deforestation by 0.4–0.5% between 2011 and 2013 for those enrolled, representing as much as a 70% reduction in deforestation attributable to Socio Bosque. Focus group interviews suggested that some landowners chose to ‘invest’ in conservation because the agricultural capacity of their land was limited and economic incentives provided an alternative livelihood strategy. Interviews, however, indicated limits to increasing enrollment rates under current conditions, due to lack of trust and liquidity constraints. Overall, a hybrid public–private governance approach can lead to larger conservation outcomes than restrictions alone.