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FOR LOVE OR MONEY: HARNESSING ENVIRONMENTAL VALUES AND FINANCIAL INCENTIVES TO PROMOTE CONSERVATION STEWARDSHIP by Paige Olmsted B.Sc.H. Queen’s University, 2006 M.P.A. Columbia University, 2008 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY in THE FACULTY OF GRADUATE AND POSTDOCTORAL STUDIES (Resources, Environment and Sustainability) THE UNIVERSITY OF BRITISH COLUMBIA (Vancouver) April 2017 © Paige Olmsted, 2017 Abstract Despite broad agreement that large scale funding is needed to address the severe risks associated with habitat loss and ecosystem service degradation, financial and market-based interventions have brought substantial division in the conservation sector. This dissertation examines the values and attitudes associated with financial mechanisms and incentives, considering diverse groups with different relationships to natural landscapes: Costa Rican farmers, North American tourists in Costa Rica, and potential conservation donors. Despite diverse barriers and motives for participation, this dissertation investigates the opportunity for financial mechanisms to bolster and support values associated with environmental responsibility. The first study pilots methods for assessing ‘relational values’, a concept that transcends traditional instrumental/intrinsic value divisions in linking people to ecosystems. Results suggest that relational values are distinct from standard methods of measuring ecological worldview and are predictive of farmer attitudes at the landscape level. The second study assesses environmental values and attitudes of Costa Rican farmers regarding their national payment for ecosystem services program. The study investigates a set of claims regarding the negative effects of monetary incentives associated with the idea of “motivational crowding out”. Results indicate strong environmental concern across both participants and non- participants, and finds strong correlations between relational values and a series of farming attitudes associated with lifestyle and conservation. ii The third study quantifies tourist preferences for specific attributes of conservation programs in Costa Rica, and explores the relationship between ecotourism and environmental values with knowledge of a prominent environmental challenge in the region. Stated interest in supporting conservation and strong environmental values presents an opportunity to leverage conservation values and increase financial support for conservation. The fourth study introduces the concept of conservation impact investing, describes the unique challenges that differentiate it from other social impact investing opportunities, and outlines a research agenda for paths forward. I address the potential for conservation impact investing to expand the reach and constituency of support for conservation, and the risks associated with diverting funds from traditional conservation programs. The dissertation lends support for the notion that appropriately designed incentive programs could significantly unite and expand interest and participation in conservation efforts rather than divide them. iii Preface Chapters 2, 3, 4, and 6 of this dissertation are intended to be published in academic journals as distinct manuscripts. They are therefore intended to stand alone, which results in some repetition of the larger research context across chapters. Chapters 2, 3, and 4 relate to research conducted as part of FuturAgua, a multi-disciplinary and multi-institutional research project that examined and supported planning processes for adaptation to climate change in Guanacaste, Costa Rica. A version of Chapter 2 has been submitted for publication in a peer-reviewed journal. Lead co- authorship for that article (which includes data from other populations) is shared by myself and Sarah Klain, who co-developed the relational value index with Kai Chan and Terre Satterfield. Sarah and I pooled and analyzed the data, and co-wrote the paper with input from Kai Chan and Terre Satterfield. Data used in this chapter is from surveys that are described and discussed in greater detail in Chapter 3 and Chapter 4. Chapter 3 has been prepared as a manuscript for submission. Survey design included input from Terre Satterfield and Kai Chan, and from university students and farmers in Nicoya, Costa Rica, in terms of content and terminology. Co-authors include Kai Chan and Terre Satterfield who contributed substantially to interpretation of results, and Jordi Honey-Rosés, who provided input to the manuscript. The UBC ethics certificate number associated with this work is H14-02572. Chapter 4 has been prepared as a manuscript for submission. The survey was designed by me in conjunction with Kai Chan and Terre Satterfield. Data collection and analysis was completed by me. My supervisory committee of Kai Chan, Terre Satterfield, and Jordi Honey-Rosés offered iv helpful guidance throughout the data analysis stages, contributed to the development and writing of the manuscript, and share authorship. The UBC ethics certificate number associated with this study is the same as the previous study, H14-02572. Chapter 5 was previously published online by IUCN, the International Union for the Conservation of Nature, as part of their social science for conservation working paper series. I was a fellow in their social science for conservation program and wrote the report. I am a member of UBC’s Public Scholar’s Initiative, which encourages and endorses non-traditional forms of scholarship associated with our research to be incorporated in doctoral theses. This is an example of such a contribution. Motivated by Chapter 5, Chapter 6 has been prepared as a manuscript for submission. It was written primarily by myself, with important contributions in design and writing from Jordi Honey-Rosés, Terre Satterfield, and Kai Chan. v Table of Contents Abstract .......................................................................................................................................... ii Preface ........................................................................................................................................... iv Table of Contents ......................................................................................................................... vi List of Tables .............................................................................................................................. xiv List of Figures ...............................................................................................................................xv List of Abbreviations ................................................................................................................ xvii Acknowledgements .................................................................................................................. xviii Chapter 1: Introduction: Finding value ......................................................................................1 1.1 Economic development and conservation ...................................................................... 2 1.2 Ecosystem services and financial mechanisms ............................................................... 3 1.3 Cultural ecosystem services and non-use values ............................................................ 5 1.4 Research questions and thesis summary ......................................................................... 7 1.4.1 Relational values (chapter 2) .................................................................................. 8 1.4.2 Financial and non-financial incentives in PES (chapter 3) ................................... 10 1.4.3 Ecotourism (chapter 4) .......................................................................................... 11 1.4.4 Conservation impact investing (chapter 5 and chapter 6) ..................................... 13 Chapter 2: Relational values resonate broadly and differently than intrinsic or instrumental values, or the New Ecological Paradigm .............................................................16 2.1 Introduction ................................................................................................................... 16 2.2 Methods......................................................................................................................... 21 2.2.1 Survey value statements and sample..................................................................... 21 vi 2.2.1.1 Online survey .................................................................................................... 24 2.2.1.2 Paper-based survey ........................................................................................... 25 2.2.1.3 Sampled population characteristics................................................................... 25 2.2.2 Statistical analysis ................................................................................................. 26 2.2.2.1 Eigenvalues and scree test ................................................................................ 27 2.2.2.2 Factor analysis .................................................................................................. 27 2.2.2.3 Consistency measure: Cronbach’s alpha .......................................................... 28 2.2.2.4 Correlation testing of environmental values and farmer attitudes .................... 28 2.3 Results ..........................................................................................................................