Contribution of REDD+ payments to the economy of rural households in Nepal

Shrestha, Sujata and Shrestha, Uttam Babu and Bawa, Kamaljit S. (2017) Contribution of REDD+ payments to the economy of rural households in Nepal. Applied Geography, 88. pp. 151-160. ISSN 0143-6228


Reducing Emissions from Deforestation and forest Degradation (REDD+) is a global climate change mitigation strategy. Under the proposed REDD+ framework, financial incentives are provided, primarily to developing countries, for forest conservation to reduce carbon emissions. Projects labelled as REDD are being implemented in a wide variety of settings in different countries. Developing an effective benefit-distribution mechanism between implementing agencies and local communities is a key challenge for the implementation of REDD+. We examined whether the REDD+ payment mechanism adopted in a REDD+ pilot project in Nepal is beneficial to the local forest users. We estimated economic contribution of the REDD+ payments to the total household income, calculated the role of payment in reducing income inequality at the household level and examined socio-economic heterogeneity represented by wealth and ethnicity among the payment recipient households. REDD+ payment provided economic benefits to the poorest households but the economic contribution of the payment to the household economy is very nominal and is insufficient to invest in livelihood enhancement activities. REDD+ payment to some extent helps to reduce income inequality among the households. Social heterogeneity of a household overshadowed household wealth status during the payment distribution among the sampled households creating social tension. Therefore, either alternative payment models or investment in community projects might yield better outcomes.

Statistics for USQ ePrint 33195
Statistics for this ePrint Item
Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: File reproduced in accordance with the copyright policy of the publisher/author.
Faculty/School / Institute/Centre: Historic - Institute for Agriculture and the Environment
Faculty/School / Institute/Centre: Historic - Institute for Agriculture and the Environment
Date Deposited: 25 Jan 2018 01:09
Last Modified: 02 May 2018 01:44
Uncontrolled Keywords: household economy; inequality; REDD+; Nepal; community forestry
Fields of Research (2008): 05 Environmental Sciences > 0599 Other Environmental Sciences > 059999 Environmental Sciences not elsewhere classified
05 Environmental Sciences > 0502 Environmental Science and Management > 050205 Environmental Management
Fields of Research (2020): 41 ENVIRONMENTAL SCIENCES > 4199 Other environmental sciences > 419999 Other environmental sciences not elsewhere classified
41 ENVIRONMENTAL SCIENCES > 4104 Environmental management > 410404 Environmental management
Identification Number or DOI:

Actions (login required)

View Item Archive Repository Staff Only