Understanding Smallholder Participation in Payments for Ecosystem Services: the Case of Costa Rica

This paper uses household survey data to examine factors associated with smallholder households that enroll in Costa Rica's longstanding payments for ecosystem services (PES) program. To date, most evaluations of this sort have focused on larger landowners. Results from this study show that smallholders enrolled in PES tend to be older, wealthier, and have access to non-farm salaried income. These features match enrollment patterns of larger landowners in that enrollees tend to be relatively wealthy and only marginally engaged in agriculture. In addition, smallholders on state agrarian reform lands are significantly less likely to enroll in PES. These results indicate that targeting PES toward smaller landowners does not necessarily equate to a policy that reaches the rural poor, and suggests that further work is needed to address the access barriers to this program for economically marginal landowners.