The cost of making compensation payments to local forest populations in a REDD+ pilot project in Madagascar

Authors

  • Laura Brimont International Institute for Sustainable Development and International Relations (IDDRI) 41 Rue du Four 75006 Paris
  • Driss Ezzine-de-Blas CIRAD
  • Alain Karsenty CIRAD

Keywords:

Madagascar, Reduction of Emissions from Deforestation and forest Degradation (REDD ), Protected Areas, conservation costs, direct compensations

Abstract

REDD+ is usually presented as an incentive-based mechanism that can provide payments to compensate for the costs induced by conservation restrictions. Yet in Madagascar REDD+ is implemented through a command-and-control approach with almost no or insufficient compensation. This paper challenges the financial feasibility of an individual cash or in-kind compensation scheme as part of a REDD+ project and assesses the cost of implementing a hypothetical individual compensation scheme for local populations living on the  boundary of an ongoing REDD+ pilot project in southeastern Madagascar. In order to estimate a plausible level of compensation, we measured households’ perceived economic losses arising from the project. We carried out this economic evaluation based on households’ declarative statements about their agricultural production (before and after project implementation) and their perceptions of the causes of such changes. We then estimated the start-up and running costs of implementing conditional transfers to compensate for reported losses using first-hand project cost data from different conservation projects in Madagascar, including the one analysed in this paper. Comparing our estimated total cost to the current budget of the REDD+ project, we concluded that compensating households would cost seven times more than the budget initially devoted to field activities during the first phase of the project. Yet we discuss that individual compensation may increase the long-term environmental and social additionality (through greater legitimacy) of the REDD+ project, as it may play a role of safety nets and help farmers, especially the most vulnerable ones, to implement new agricultural techniques to adapt to land use restrictions.

 

Résumé

REDD+ est généralement présenté comme un mécanisme incitatif basé sur la compensation des coûts induits par les mesures de conservation de la forêt. Cette vision de REDD+ tend toutefois à être remise en cause par la réalité des projets pilotes. À Madagascar par exemple, les projets pilotes sont mis en œuvre selon une logique contraignante voire coercitive, où les compensations pour les populations locales sont extrêmement réduites. Partant de l’hypothèse que l’un des facteurs explicatifs de l’absence de mécanisme de compensation directe est un coût trop élevé, ce papier évalue le coût de la mise en œuvre d’un système de compensations monétaires individuelles en parallèle des activités de conservation et de développement d’un projet pilote REDD+ situé au sud-est de Madagascar. Pour ce faire, nous estimons les pertes économiques induites par le projet telles que perçues par les ménages au moyen d’entretiens individuels. Ces entretiens nous ont permis de reconstituer la production des ménages avant et après la mise en œuvre du projet, et d’évaluer dans quelle mesure les changements opérés étaient ou non dus à l’implémentation du projet REDD+. Dans un second temps, nous estimons les coûts de transaction liés à la mise en œuvre du système de compensation en utilisant des données issues de différents projets de conservation et de développement à Madagascar. La confrontation de nos estimations avec le budget actuel du projet REDD+ montre que compenser les pertes individuelles des ménages est hors de la portée financière du projet, puisque cela représente sept fois le budget dédié aux activités de développement local pendant la première phase du projet. Dans la discussion, nous revenons sur l’intérêt d’associer des compensations individuelles aux programmes d’investissement agricole, dans la mesure où les compensations jouent un rôle de « filet de sécurité » pour les ménages, notamment les plus vulnérables, et les encouragent à expérimenter de nouvelles techniques agricoles leur permettant de s’adapter aux restrictions d’usage.

Author Biographies

Driss Ezzine-de-Blas, CIRAD

Research Unit The Tropical Forest Goods and Ecosystem Services

Alain Karsenty, CIRAD

Research Unit The Tropical Forest Goods and Ecosystem Services

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Eastern rainforest Madagascar; REDD +; Madagascar Conservation & Development; ricefields

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31-12-2017

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