How Can Market Mechanisms for Forest
Environmental Services Help the Poor?
Preliminary Lessons from Latin America
MARYANNE GRIEG-GRAN; INA PORRAS and
World Development Vol. 33, No. 9, pp. 1511–1527, 2005
Market mechanisms for forest environmental services are a new approach for conservation,
but there is also an increasing interest in the derived developmental benefits of these mechanisms.
We first propose a conceptual framework for future research on the livelihood impacts of
environmental service markets. We then review eight Latin American case studies on carbon
sequestration and watershed protection market initiatives, finding positive local income effects in
most cases, more land tenure security and socioinstitutional strengthening in some cases, but some
negative effects also. We recommend pro-poor policy measures such as reducing smallholders’
transaction costs and removing inappropriate access restrictions.