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Payment for Environmental Services in El Salvador

Abstract Much of El Salvador's crop production is in mountainous areas with gradients over 15%. The main crops are shade-grown coffee, sugar cane, citrus and other fruit trees, and staples for local consumption, including maize, beans, rice, and sorghum. The latter are produced on small-scale subsistence farms in mountainous zones (0.3–2 ha per farmer) characterized by intensive use of the soil and a lack of conservation practices (Figures 1, 2). Until now, most rural development projects have used incentives to mitigate the effects of the resulting environmental degradation. Records for Central America show that approximately 86% of soil and water conservation projects use incentives. Nevertheless, it is rare to observe spontaneous diffusion and medium- or long-term adoption of the technologies promoted through incentives on a significant number of farms or larger areas. Most technologies are implemented locally by a few farmers and are abandoned as soon as the project terminates. Therefore, efforts are now being made in Central American countries to institute payment for environmental services (PES).