Forest protection and tenure status: The key role of indigenous peoples and protected areas in Panama

Using recent land cover maps, we used matching techniques to analyze forest cover and assess effectiveness in avoiding deforestation in three main land tenure regimes in Panama, namely protected areas, indigenous territories and non-protected areas. We found that the tenure status of protected areas and indigenous territories (including comarcas and claimed lands) explains a higher rate of success in avoided deforestation than other land tenure categories, when controlling for covariate variables such us distance to roads, distance to towns, slope, and elevation. In 2008 protected areas and indigenous territories had the highest percentage of forest cover and together they hosted 77% of Panama's total mature forest area. Our study shows the promises of matching techniques as a potential tool for demonstrating and quantifying conservation efforts. We therefore propose that matching could be integrated to methodological approaches allowing compensating forests’ protectors. Because conserving forest carbon stocks in forested areas of developing countries is an essential component of REDD+ and its future success, the discussion of our results is relevant to countries or jurisdictions with high forest cover and low deforestation rates.     

Deforestation dynamics and drivers in different forest types in Latin America: Three decades of studies (1980–2010)

Over the last decades there have been a considerable number of deforestation studies in Latin America reporting lower rates compared with other regions; although these studies are either regional or local and do not allow the comparison of the intraregional variability present among countries or forest types. Here, we present the results obtained from a systematic review of 369 articles (published from 1990 to 2014) about deforestation rates for 17 countries and forest types (tropical lowland, tropical montane, tropical and subtropical dry, subtropical temperate and mixed, and Atlantic forests). Drivers identified as direct or indirect causes of deforestation in the literature were also analysed. With an overall annual deforestation rate of −1.14 (±0.092 SE) in the region, we compared the rates per forest type and country. The results indicate that there is a high variability of forest loss rates among countries and forest types. In general, Chile and Argentina presented the highest deforestation rates (−3.28 and −2.31 yearly average, respectively), followed by Ecuador and Paraguay (−2.19 and −1.89 yearly average, respectively). Atlantic forests (−1.62) and tropical montane forests (−1.55) presented the highest deforestation rates for the region. In particular, tropical lowland forests in Ecuador (−2.42) and tropical dry forests in Mexico (−2.88) and Argentina (−2.20) were the most affected. In most countries, the access to markets and agricultural and forest activities are the main causes of deforestation; however, the causes vary according to the forest types. Deforestation measurements focused at different scales and on different forest types will help governments to improve their reports for international initiatives, such as reducing emissions from deforestation and forest degradation (REDD+) but, more importantly, for developing local policies for the sustainable management of forests and for reducing the deforestation in Latin America.     

The impacts of cocaine-trafficking on conservation governance in Central America

This research is motivated by the compelling finding that the illicit cocaine trade is responsible for extensive patterns of deforestation in Central America. This pattern is most pronounced in the region's large protected areas. We wanted to know how cocaine trafficking affects conservation governance in Central America's protected areas, and whether deforestation is a result of impacts on governance. To answer this question, we interviewed conservation stakeholders from key institutions at various levels in three drug-trafficking hotspots: Peten, Guatemala, Northeastern Honduras, and the Osa Peninsula in Costa Rica. We found that, in order to establish and maintain drug transit operations, drug-trafficking organizations compete with and undermine conservation governance actors and institutions. Drug trafficking impacts conservation governance in three ways: 1) it undermines long standing conservation coalitions; 2) it fuels booms in extractive activities inside protected lands; and 3) it erodes the territorial control that conservation institutions exert, exploiting strict “fortress” conservation governance models. Participatory governance models that provide locals with strong expectations of land tenure and/or institutional support for local decision-making may offer resistance to the impacts on governance institutions that we documented.     

The role of soybean production as an underlying driver of deforestation in the South American Chaco

South America’s tropical dry forests and savannas are under increasing pressure from agricultural expansion. Cattle ranching and soybean production both drive these forest losses, but their relative importance remains unclear. Also unclear is how soybean expansion elsewhere affects deforestation via pushing cattle ranching to deforestation frontiers. To assess these questions, we focused on the Chaco, a 110 million ha ecoregion extending into Argentina, Bolivia, and Paraguay, with about 8 million ha of deforestation in 2000–2012. We used panel regressions at the district level to quantify the role of soybean expansion in driving these forest losses using a wide range of environmental and socio-economic control variables. Our models suggest that soybean production was a direct driver of deforestation in the Argentine Chaco only (0.08 ha new soybean area per ha forest lost), whereas cattle ranching was significantly associated with deforestation in all three countries (0.02 additional cattle per hectare forest loss). However, our models also suggested Argentine soybean cultivation may indirectly be linked to deforestation in the Bolivian and Paraguayan Chaco. We furthermore found substantial time-delayed effects in the relationship of soybean expansion in Argentina and Paraguay (i.e., soybean expansion in one year resulted in deforestation several years later) and deforestation in the Chaco, further suggesting that possible displacement effects within and between Chaco countries may at least partly drive forest loss. Altogether, our study showed that deforestation in the Chaco appears to be mainly driven by the globally surging demand for soybean, although regionally other proximate drivers are sometimes important. Steering agricultural production in the Chaco and other tropical dry forests onto sustainable pathways will thus require policies that consider these scale effects and that account for the regional variation in deforestation drivers within and across countries.     

Land tenure and agricultural expansion in Latin America: The role of Indigenous Peoples’ and local communities’ forest rights

Agricultural expansion remains the most important proximate cause of tropical deforestation, while interactions between socio-economic, technological and institutional factors represent the fundamental drivers. Projected population increases could further raise the pressure on the remaining forests, unless agricultural intensification allows raising agricultural output without expanding agricultural areas. The purpose of this article is to understand the role of institutional factors in governing the intensification process towards the goal of preserving forests from agricultural pressures, with a focus on Indigenous Peoples’ and local communities’ rights to forests (as embedded in the various tenure regimes). In this paper we adopt an international dimension and analyse the process of agricultural expansion across eleven Latin American countries over the period 1990–2010 to assess whether, in a context of agricultural intensification, different land tenure regimes impact differently on the realization of land-sparing or Jevons paradox. The results, based on a number of multivariate statistical models that controls for socio-economic factors, strongly suggest that the formal recognition of Indigenous Peoples and local communities’ forest rights has played an important role in promoting land sparing or attenuating Jevons paradox.     

Forty-year multi-scale land cover change and political ecology data reveal a dynamic and regenerative process of forests in Peruvian Indigenous Territories

This article explores deforestation and reforestation dynamics over 415,749 hectares of 25 titled Indigenous Community Lands (ICLs) in the Peruvian Amazon over forty years at three scales: total area, regions, and communities. We focus on ICLs as the territorial unit of analysis, as they are increasingly discussed regarding their importance for conservation. Additionally indigenous communities (ICs) are a too-marginalized group in the Amazon that merit more attention. Analyses of this kind are often short-term and use only large-scale Earth Observation methodologies. We use a multi-method approach linking remote sensing with ground verification, and qualitative historical political ecology work with ICs. We find that overall accumulated deforestation was low at 5%, but that when reforestation is considered, net deforestation was only 3.5%. At the community level deforestation and afforestation dynamics are complex, except for one period that indicates a macro state driver in the region. Results suggest inadequate accounting for forest regeneration in deforestation analyses and challenge the notion that presenting stakeholders with accumulated forest loss values is helpful in tropical areas where forests and people are dynamic. Furthermore, our work with communities highlights that categorizing them and their lands as pro-environment or not in general terms is unhelpful for determining fund flows to ICLs for environmental or development purposes.     

Indigenous Lands with secure land-tenure can reduce forest-loss in deforestation hotspots

Due to human activities, most natural ecosystems of the world have disappeared and the rest are threatened. At a global scale, 40% of the remaining forests occur in Indigenous Peoples Lands (IPL). While several studies show that IPL contribute to conserve forest-cover and halt forest-loss, other studies have found opposite results. The differing results on the role of IPL in forest conservation and loss are probably because of the effect of other variables, e.g. land tenure security. In this study, we addressed the role of IPL in forest conservation and loss, differentiating IPL with land-tenure security (IPL-S) and insecurity (IPL-I). We worked in a deforestation hotspot, the South American Dry Chaco region. First, we mapped IPL in the Dry Chaco. Then, covering the period 2000–2019, we measured forest cover and loss in IPL-S, IPL-I and in areas that are not Indigenous (non-IPL). Finally, we used a matching estimators method to statistically evaluate if IPL-S and IPL-I halt forest loss. To avoid bias, we accounted for the effect of variables such as Country (Argentina/Bolivia/Paraguay), Protected Area (yes/no), etc. We created the first map of IPL for the Dry Chaco, and found that at least 44% of the remaining forests are in IPL, and 67% of them are IPL-I. Our results also showed that IPL-S work as deforestation barriers. Inside PA, the effect of IPL-S was not always significant, probably because PA were already reducing forest loss. The effect of IPL-I on halting forest-loss was variable. We conclude that land-tenure security is key for IPL to reduce forest-loss, adding evidence on the importance of securing land-tenure rights of Indigenous communities for conservation purposes. At a regional scale, a large proportion of the remaining forests are Indigenous and conservation initiatives should be co-developed with locals, respecting their rights, needs and cosmovisions.     

Temporal patterns of deforestation and fragmentation in lowland Bolivia: implications for climate change

The lowlands of eastern and northeastern Bolivia are characterized by a transition between the humid evergreen forests of the Amazon Basin and the deciduous thorn-scrub vegetation of the Gran Chaco. Within this landscape lies one of the world’s best preserved areas: the ecoregion known as the Chiquitano dry forest, where deforestation patterns over a 30 year period were analyzed. Results indicate that the area of the natural cover was reduced from 97.21 % before 1976 to 82.10 % in 2008, causing significant change in the landscape, especially in the spatial configuration of forest cover. The density of forest fragments increased from 0.073 patches per 100 ha before 1976 to 0.509 in 2008, with a mean distance between patches of 151 and 210 m over the same period, leading to a considerable reduction in the fragment sizes, from 1,204 ha before 1976 to a mere 54 in 2008. This pattern, observed in forests, does not occur in the savannas because, on one hand the savanna area is much lower compared to that of forests, and on the other because the deforestation process tended to be concentrated within forested areas. Based on the observed patterns, it is possible that in the future the natural landscapes will be substituted principally by anthropic landscapes, if there is no change in the economic and land distribution policies. If this process continues, it will stimulate the expansion of mechanized agriculture and the colonization of new areas, which will lead to further deforestation and landscape fragmentation.     

Titling land to conserve forests: The case of Cuyabeno Reserve in Ecuador

We used a mixed-methods approach to assess the impact of a ‘forest-friendly’ titling program on previously untitled lands surrounding the Cuyabeno Reserve in Ecuador. Such programs are part of an increasing trend in tenure formalization intended to simultaneously strengthen tenure security, reduce deforestation, and open the door for more incentive-based conservation programs. We use quasi-experimental methods to estimate and compare the impact of titling on forest outcomes for lands that are titled with certain limitations on the ownership bundle of rights, alongside lands titled but without these restrictions. This quantitative analysis is paired with results from a series of focus group interviews with landowners to understand their experiences with the titling effort, particularly tied to the restrictions. Our results point to a statistically significant impact of titling with restrictions on reducing deforestation by 34%, whereas titling without such restrictions resulted in no significant effect. When we explore impacts according to annual deforestation rates, the results suggest that titled lands are buffered from the surges in deforestation that otherwise occurred on untitled lands and more broadly across the region. While ‘forest-friendly’ restrictions had more of an effect on forest outcomes than titled lands without, the insights shared by landowners suggest important concerns about equity and unjust burdens on current households that could risk livelihood options for future generations.     

Enforcement and inequality in collective PES to reduce tropical deforestation: Effectiveness,efficiency and equity implications

Collective Payments for Ecosystem Services (PES), where forest users receive compensation conditional on group rather than individual performance, are an increasingly used policy instrument to reduce tropical deforestation. However, implementing effective, (cost) efficient and equitable (3E) collective PES is challenging because individuals have an incentive to free ride on others’ conservation actions. Few comparative studies exist on how different enforcement strategies can improve collective PES performance. We conducted a framed field experiment in Brazil, Indonesia and Peru to evaluate how three different strategies to contain the local free-rider problem perform in terms of the 3Es: (i) Public monitoring of individual deforestation, (ii) internal, peer-to-peer sanctions (Community enforcement) and (iii) external sanctions (Government enforcement). We also examined how inequality in wealth, framed as differences in deforestation capacity, affects policy performance. We find that introducing individual level sanctions can improve the effectiveness, efficiency and equity of collective PES, but there is no silver bullet that consistently improves all 3Es across country sites. Public monitoring reduced deforestation and improved the equity of the program in sites with stronger history of collective action. External sanctions provided the strongest and most robust improvement in the 3Es. While internal, peer enforcement can significantly reduce free riding, it does not improve the program’s efficiency, and thus participants’ earnings. The sanctioning mechanisms failed to systematically improve the equitable distribution of benefits due to the ineffectiveness of punishments to target the largest free-riders. Inequality in wealth increased group deforestation and reduced the efficiency of Community enforcement in Indonesia but had no effect in the other two country sites. Factors explaining differences across country sites include the history of collective action and land tenure systems.     

Tropical land savannization: impact of global warming

This study investigates the impact of global warming on the savannization of the tropical land region and also examines the relative roles of the impact of the increase of greenhouse gas concentration and future changes in land cover on the tropical climate. For this purpose, a mechanistic–statistical–dynamical climate model with a bidirectional interaction between vegetation and climate is used. The results showed that climate change due to deforestation is more than that due to greenhouse gases in the tropical region. The warming due to deforestation corresponds to around 60% of the warming in the tropical region when the increase of CO₂ concentration is included together. However, the global warming due to deforestation is negligible. On the other hand, with the increase of CO₂ concentration projected for 2100, there is a lower decrease of evapotranspiration, precipitation and net surface radiation in the tropical region compared with the case with only deforestation. Differently from the case with only deforestation, the effect of the changes in the net surface radiation overcomes that due to the evapotranspiration, so that the warming in the tropical land region is increased. The impact of the increase of CO₂ concentration on a deforestation scenario is to increase the reduction of the areas covered by tropical forest (and a corresponding increase in the areas covered by savanna) which may reach 7.5% in future compared with the present climate. Compared with the case with only deforestation, drying may increase by 66.7%. This corroborates with the hypothesis that the process of savannization of the tropical forest can be accelerated in future due to global warming.     

CARBON EMISSIONS FROM MEXICAN FORESTS: CURRENT SITUATION AND LONG-TERM SCENARIOS

Estimates of carbon emissions from the forest sector in Mexico are derived for the year 1985 and for two contrasting scenarios in 2025. The analysis covers both tropical and temperate closed forests. In the mid-1980s, approximately 804,000 ha/year of closed forests suffered major perturbations, of which 668,000 ha was deforestation. Seventy-five percent of total deforestation is concentrated in tropical forests. The resulting annual carbon balance from land-use change is estimated at 67.0 × 10⁶ tons/year, which lead to net emissions of 52.3 × 10⁶ tons/year accounting for the carbon uptake in restoration plantations and degraded forest lands. This last figure represents approximately 40% of the country's estimated annual total carbon emissions for 1985–1987. The annual carbon balance from the forest sector in 2025 is expected to decline to 28.0 × 10⁶ t in the reference scenario and to become negative (i.e., a carbon sink), 62.0 × 10⁶ t in the policy scenario. A number of policy changes are identified that would help achieve the carbon sequestration potential identified in this last scenario.     

Trajectories of deforestation,coffee expansion and displacement of shifting cultivation in the Central Highlands of Vietnam

Production of commodities for global markets is an increasingly important factor of tropical deforestation, taking over smallholders subsistence farming. Measures to reduce deforestation and convert shifting cultivation systems towards permanent crops have recently been strengthened in several countries. But these changes have variable environmental and social impacts, including on ethnic minorities. In Vietnam, although a forest transition – i.e. shift from shrinking to expanding forest cover – occurred at the national scale, deforestation fronts and agricultural colonization for commodity crops – a.o. coffee – still dominated the Central Highlands plateaus. Previous studies suggested that the dominant land use changes in that region were on the one hand the acquisition and conversion of agricultural lands to perennial crops for external markets by capital-endowed Kinh households – the majority ethnic group in Vietnam – and on the other hand the corresponding displacement of poor households of ethnic minorities relying on shifting cultivation towards the forest margins. This study tested this hypothesis by using remote sensing to analyze land use and cover changes and deforestation trajectories in the coffee-growing area in Dak Lak and Dak Nong provinces over 2000–2010. Land use changes were linked with socioeconomic dynamics using secondary statistics and spatial modelling. Net deforestation reached ?0.31% y^?1 of the total area between 2000 and 2010. Deforestation was indeed mainly directly caused by shifting cultivation for annual crops, but this was partly driven indirectly by expansion of coffee and other perennial crops over agricultural lands. Displacement of shifting cultivation into the forest margins, pushed by market crops expansion, was the spatial manifestation of the marginalization of local ethnic minorities and poor migrants, pushed by capital-endowed migrants. This marginalization is a long-standing process rooted in the colonization and development strategy for the highlands followed since colonial times. Over the late 2000s, rapid deforestation was strongly reducing the benefits of national-scale forest recovery, and might shift the country back to net losses of natural forest. Implications for policies that may affect deforestation are discussed.     

Assessment of rates of deforestation classes in the Paraguayan Chaco (Great South American Chaco) with comments on the vulnerability of forests fragments to climate change

A large portion of the Occidental Region of Paraguay consists of a semi-arid territory with vegetation adapted to the features of this region. For just over a decade, a process of intense deforestation has resulted from the expansion of mechanized farming, carried out without any form of land management or planning; this has led to the fragmentation of the forests in this region. This study has taken satellite imagery from 1975, 1990, 2000 and 2007 with the purpose of determining the average size of the fragments and the rate of forest discontinuity; the results of this multi-temporal imagery analysis show that (a) in some areas of the Central Chaco, the forest matrix was transformed principally into cropped areas; (b) the majority of the fragments are isolated from one other; and (c) the areas mostly covered by forests are in the north-northeastern and northwestern areas and this is mainly as a result of a greater concentration of protected areas. In conclusion, the vulnerability of the vegetation formations increases with the fragmentation process, to which we should add an increased frequency of fires, a reduced resilience and homeostasis of the vegetation formations; thus these are highly exposed to climate change factors. It is imperative that the forest landscapes be restored, through the implementation biological corridors, to ensure the continuity of the remaining forests.     

Dry season precipitation over the Mesoamerican Biological Corridor is more sensitive to deforestation than to greenhouse gas driven climate change

To prevent the loss of biodiversity in northern Central America, which is one of 34 global biodiversity hotspots, the Mesoamerican Biological Corridor, a network of protected parks and reserves has been proposed. While on-going deforestation to croplands and pastures outside the protected regions is likely to effect the dry season precipitation over the regenerated and extant forests in the proposed protected regions, global climate change driven precipitation changes may also be a significant factor, at least at some locations. This study compares the effects of land cover change to the effects of elevated greenhouse gas concentrations on precipitation in the proposed areas of the Mesoamerican Biological Corridor network. Using 5 consecutive dry season simulations of the effects of land cover change that included dry, wet and normal years, and using statistically downscaled global climate model (GCM) precipitation from the fourth assessment report (AR4), a larger expanse of the proposed protected regions was found more sensitive to precipitation decreases due to land cover changes. Two specific protected regions however stand out: the Maya Highlands and some areas of the Maya lowlands that were more sensitive to global climate change driven precipitation decreases. In these protected regions it is likely that irrespective of local policies the climate change signal would dominate.     

Diverging forest land use dynamics induced by armed conflict across the tropics

Armed conflicts trigger region-specific mechanisms that affect land use change. Deforestation is presented as one of the most common negative environmental impacts resulting from armed conflicts, with relevant consequences in terms of greenhouse gas emissions and loss of ecosystem services. However, the impact of armed conflict on forests is complex and may simultaneously lead to positive and negative environmental outcomes, i.e. forest regrowth and deforestation, in different regions even within a country. We investigate the impact that armed conflict exerted over forest dynamics at different spatial scales in Colombia and for the global tropics during the period 1992–2015. Through the analysis of its internally displaced population (departures) our results suggest that, albeit finding forest regrowth in some municipalities, the Colombian conflict predominantly exerted a negative impact on its forests. A further examination of georeferenced fighting locations in Colombia and across the globe shows that conflict areas were 8 and 4 times more likely to undergo deforestation, respectively, in the following years in relation to average deforestation rates. This study represents a municipality level, long-term spatial analysis of the diverging effects the Colombian conflict exerted over its forest dynamics over two distinct periods of increasing and decreasing conflict intensity. Moreover, it presents the first quantified estimate of conflict's negative impact on forest ecosystems across the globe. The relationship between armed conflict and land use change is of global relevance given the recent increase of armed conflicts across the world and the importance of a possible exacerbation of armed conflicts and migration as climate change impacts increase.     

Spatially complex land change: The Indirect effect of Brazil's agricultural sector on land use in Amazonia

Soybean farming has brought economic development to parts of South America, as well as environmental hopes and concerns. A substantial hope resides in the decoupling of Brazil's agricultural sector from deforestation in the Amazon region, in which case expansive agriculture need not imply forest degradation. However, concerns have also been voiced about the potential indirect effects of agriculture. This article addresses these indirect effects for the case of the Brazilian Amazon since 2002. Our work finds that as much as thirty-two percent of deforestation, or the loss of more than 30,000 km² of Amazon forest, is attributable, indirectly, to Brazil's soybean sector. However, we also observe that the magnitude of the indirect impact of the agriculture sector on forest loss in the Amazon has declined markedly since 2006. We also find a shift in the underlying causes of indirect land use change in the Amazon, and suggest that land appreciation in agricultural regions has supplanted farm expansions as a source of indirect land use change. Our results are broadly congruent with recent work recognizing the success of policy changes in mitigating the impact of soybean expansion on forest loss in the Amazon. However, they also caution that the soybean sector may continue to incentivize land clearings through its impact on regional land markets.     

Scaling up zero-deforestation initiatives through public-private partnerships: A look inside post-conflict Colombia

The rise of public and private zero-deforestation commitments is opening a new collaborative space in global forest governance. Governments seeking to reduce national greenhouse gas emissions by protecting and restoring forests are partnering with companies motivated to eliminate deforestation from supply chains. The proliferation of zero-deforestation initiatives is creating opportunities for policy synergies and scaling up impacts, but has led to a more complex regulatory landscape. Drawing on policy analysis and expert interviews, we explore public-private policy interactions in Colombia as a case study for tropical forested nations with interest in aligning climate, forest, and development goals. We consider how zero-deforestation priorities are set on the national agenda and scaled up through public-private partnerships. We identify zero-deforestation initiatives in three overlapping governance domains—domestic public policy, REDD+, sustainable supply chain initiatives—and highlight ten multi-stakeholder pledges that have catalyzed supporting initiatives at multiple scales. Emerging from decades of armed conflict, Colombia is pursuing a peace building model based on low-emissions rural development. The peace deal provided a focusing event for zero-deforestation that converged with political momentum and institutional capacity to open a policy window. A government pledge to eliminate deforestation in the Colombian Amazon by 2020 set the national agenda and stimulated international REDD+ cooperation. Lessons from Colombia show that governments provide important directionality among the proliferation of zero-deforestation initiatives. Public pledges and the orchestration of actors through public-private partnerships allow governments to scale up efforts by aligning transnational activities with national priorities. The case of Colombia serves as a potential zero-deforestation model for other nations, but challenges around equitable land tenure, illegality, and enforcement must be overcome for multi-stakeholder initiatives to produce long-term change.     

Forest law enforcement in the Brazilian Amazon: Costs and income effects

Despite recent success in reducing forest loss in the Brazilian Amazon, additional forest conservation efforts, for example, through ‘Reducing Emissions from Deforestation and Forest Degradation’ (REDD+), could significantly contribute to global climate-change mitigation. Economic incentives, such as payments for environmental services could promote conservation, but deforestation often occurs on land without crucial tenure-security prerequisites. Improving the enforcement of existing regulatory disincentives thus represents an important element of Brazil's anti-deforestation action plan. However, conservation law enforcement costs and benefits have been much less studied than for conditional payments. We develop a conceptual framework and a spatially explicit model to analyze field-based regulatory enforcement in the Brazilian Amazon. We validate our model, based on historical deforestation and enforcement mission data from 2003 to 2008. By simulating the current conservation law enforcement practice, we analyze the costs of liability establishment and legal coercion for alternative conservation targets, and evaluate corresponding income impacts. Our findings suggest that spatial patterns of both deforestation and inspection costs markedly influence enforcement patterns and their income effects. Field-based enforcement is a highly cost-effective forest conservation instrument from a regulator's point of view, but comes at high opportunity costs for land users. Payments for environmental services could compensate costs, but will increase budget outlays vis-à-vis a command-and-control dominated strategy. Both legal and institutional challenges have to be overcome to make conservation payments work at a larger scale. Decision-makers may have to innovatively combine incentive and disincentive-based policy instruments in order to make tropical forest conservation both financially viable and socially compatible.