Combining Auctions and Performance‐Based Payments in a Forest Enrichment Field Trial in Western Kenya

Cost‐effectiveness is an important aspect in the assessment of payments for environmental services (PES) initiatives. In participatory field trials with communities in Western Kenya, we combined procurement auctions for forest enrichment contracts with performance‐based payments and compared the outcomes with a baseline scenario currently used by the Kenyan Forest Service. Procurement auctions were the most cost‐effective. The competitive nature of the auction reduced contracting expenses (provision costs), and the result‐oriented payments provided additional incentives to care for the planted seedlings, resulting in their improved survival rates (service quantity). These gains clearly exceeded increases in transaction costs associated with conducting an auction. The number of income‐poor auction participants and winners was disproportionately high and local institutional buy‐in was remarkably strong. Our participatory approach may, however, require adaptations when conducted at a larger scale. Although the number of contracts we monitored was limited and prohibited the use of statistical tests, our study is one of the first to reveal the benefits of using auctions for PES in developing countries. Combinando Subastas y Pagos Basados en Desempeño en un Ensayo de Campo de Enriquecimiento de Bosques en el Oeste de Kenia     

Factors Influencing Local Communities’ Satisfaction Levels with Different Forest Management Approaches of Kakamega Forest, Kenya

Satisfaction of communities living close to forests with forest management authorities is essential for ensuring continued support for conservation efforts. However, more often than not, community satisfaction is not systematically elicited, analyzed, and incorporated in conservation decisions. This study attempts to elicit levels of community satisfaction with three management approaches of Kakamega forest in Kenya and analyze factors influencing them. Three distinct management approaches are applied by three different authorities: an incentive-based approach of the Forest Department (FD), a protectionist approach of the Kenya Wildlife Service (KWS), and a quasi-private incentive-based approach of Quakers Church Mission (QCM). Data was obtained from a random sample of about 360 households living within a 10-km radius around the forest margin. The protectionist approach was ranked highest overall for its performance in forest management. Results indicate that households are influenced by different factors in their ranking of management approaches. Educated households and those located far from market centers are likely to be dissatisfied with all the three management approaches. The location of the households from the forest margin influences negatively the satisfaction with the protectionist approach, whereas land size, a proxy for durable assets, has a similar effect on the private incentive based approach of the QCM. In conclusion, this article indicates a number of policy implications that can enable the different authorities and their management approaches to gain approval of the local communities.