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Abstract

Globally, land use changes and deforestation contribute with around 20% of the green house gases emissions. Payments for Environmental Services (PES) schemes constitute a way to cope with these problems and promote the conservation of natural resources using market-based incentives. Through empirical evidence from Peru, this study assesses the impact of payments for carbon reductions and analyzes factors which can contribute to the adoption of these projects. Household behavior is analyzed with a linear programming model. The preliminary results indicate that carbon payments would increase the income of the farmers, thus could contribute to increase the adoption of these projects.

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