Testing Factors that Enhance Private Participation in Payments for Ecosystem Service Programs Targeting Flood Mitigation

This report empirically examines the determinants of private participation in flood mitigation programs that use a payment for ecosystem services (PES) framework and suggests improved PES program designs and enhancements to their flood mitigation effectiveness. It offers evidence suggesting income from farming and potential participants' past experiences with PES programs may increase participation in programs aiming to mitigate flooding and that in turn could reduce economic damages from flooding impacts. The study reveals that incentive-based programs may help reduce the impacts of flooding on vulnerable populations through incentive-based approaches.