Page 153 - Environment: The Science Behind the Stories

Forested area

(a) 1940 (b) 1987 (c) 2005

FIguRE 6.1 Forest cover in Costa Rica decreased between 1940 and 1987, but it increased by 2005.
Data from FONAFIFO.

target ecotourism, while international lending agencies provided 2009, FONAFIFO had paid 57 billion colónes ($110 million)
loans and donations. Because greenhouse gases are emitted to over 8300 landholders and had registered over 670,000
when fossil fuels are burned, the nation used money from a ha (1.66 million acres)—13% of the nation’s land area.
3.5% tax on fossil fuels to help fund the program. It also sought Today the program continues, and deforestation has been
to sell carbon offsets on global carbon trading markets (p. 541). virtually eliminated. The nation’s area of land covered by forest
Costa Rican landholders lined up for the payments. The has risen from a low of 17% in 1983 to 52% today (FIguRE 6.1).
agency created to administer the PSA program, the Fondo In the years since the PSA program was initiated, Costa Ricans
Nacional de Financiamiento Forestal (FONAFIFO), signed up have enjoyed an increase in per capita income of over 50%—
landowners, sent forestry agents (called regentes) out to advise an enhancement in wealth surpassing the vast majority of other
them on forest conservation and to monitor compliance, and nations.
processed millions of dollars in payments. Many factors contributed toward Costa Rica’s success
As the program proceeded, Costa Rica’s rate of deforesta- in building a wealthier society while protecting its ecological
tion fell while new forest regrew, outpacing the loss of existing for- assets. Back in 1948, Costa Rica became the first nation in the
est. As a result, the country’s forest cover increased by 10% in the world to abolish its army. The country’s leaders reinvested funds
decade after 1996. Many policymakers, economists, and envi- from the military budget into health and education instead. With
ronmental advocates cheered the program’s apparent success a stable democratic government and a healthy and educated
in safeguarding forests and the ecosystem services they provide. citizenry, the stage was set for well-managed development,
However, some observers argued that forest loss had been including innovative advances in conservation. In the 1970s the
slowing for other reasons and that the program itself had lit- nation began establishing national parks, eventually creating
tle effect. They contended that payments were being wasted one of the world’s finest systems of protected areas, covering
on people who were not planning to cut down their trees. Crit- one-quarter of Costa Rica’s territory. Ecotourism at the parks
ics also lamented that larger, wealthier landowners utilized the today brings wealth into the country: Each year 2 million tour-
program most, while low-income small farmers were under- ists from around the world inject $2 billion into Costa Rica’s
represented. These concerns were born out by a number of economy.
researchers who have conducted studies of the program’s As a result, Costa Ricans understand the economic value
effectiveness (see THE SCIENCE BEHIND THE STORY, pp. 162–163). of protecting their natural capital. With the economic value of
In response, the government modified its policies, nature so clear, an ethic of conservation has grown and flour-
seeking to make the program more accessible to small ished. In today’s Costa Rica, an ethical appreciation for nature
farmers and to target the payments to locations where for- and an economic appreciation for nature go hand in hand,
est is most at risk and environmental assets are greatest. By pointing the way toward truly sustainable development.

Culture, Worldview, people everywhere begin to better appreciate the contributions
of ecological systems to human economies. The United States
and the Environment issues payments for ecological services through its Conserva-
tion Reserve Program (p. 257), which pays farmers to retain
Costa Rica’s program of payment for environmental services vegetation to prevent erosion, conserve soil, enhance wildlife
has inspired similar approaches throughout the world. From habitat, and reduce water pollution. All such programs seek to
152 Mexico to Australia to China, these programs are succeeding as defuse a dilemma facing many rural landholders, who often

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