The livelihood impacts of the Equitable Payments for Watershed Services (EPWS) Program in Morogoro, Tanzania

Research on PES programs in agro-ecosystems is recent and limited in developing countries. The authors use a multi-method, quasi-experimental impact evaluation approach to examine direct and indirect livelihood impacts of the Equitable Payments for Watershed Services (EPWS) program piloted in the Morogoro region in Tanzania. The evaluation is based on a survey of 116 program participants and 117 non-participants, 32 semi-structured interviews and 16 focus group discussions to complement the survey data. They find that, while the EPWS program incentives resulted in direct benefits, indirect benefits such as increased crop yields, higher land values, new employment opportunities, more knowledgeable farmers, improved leadership skills as well as increased trust, expanded internal and external networks and strengthened institutions were more important. The results clearly indicate the potential of PES schemes to generate win-win outcomes in agro-ecosystems, but they also call for attention to equity in the design of PES programs implemented on agro-ecosystems.