By Jamie Martin
Clearing forests for farming has long been a survival tactic for farmers in tropical areas. However, Stanford researchers are designing smarter incentives that help farmers protect forests without losing their livelihoods.
Traditional payment for ecosystem services (PES) programs often failed because they demanded farmers preserve all forest areas in exchange for payments. Many farmers found this too restrictive and opted out.
To address this, Stanford’s team developed PES contracts offering payments scaled by the amount of forest conserved. This flexible model encourages greater participation and allows farmers to protect forests while maintaining income.
“This is about creating win-win solutions—approaches that are practical for farmers and effective for conservation,” said Irene Lo, a Stanford researcher.
The team is also exploring ways to harness market forces. In Indonesia, small-scale palm oil farmers often clear forests due to price uncertainties. Stanford’s research suggests that improving price transparency and data-sharing platforms between farmers and buyers could increase farmer incomes and reduce deforestation risks.
One example is a digital platform called Pempem, which allows farmers to check daily prices from multiple buyers, reducing their reliance on middlemen and decreasing the urge to clear more land.
“These platforms offer dual benefits,” Lo said. “They help farmers secure better livelihoods and give buyers the information they need to make smarter sourcing decisions.”
Combining economic models, supply chain insights, and field studies, the team’s research has attracted interest from groups like The Nature Conservancy. The challenge now is to bring these smart ideas into real-world applications.
Stanford researchers plan to continue field experiments and integrate findings into global climate models. Their goal is to show how local incentives can impact deforestation rates and carbon emissions worldwide.
Smart policies like these prove that with the right support, both environmental protection and economic gains are possible—a message the Stanford team is eager to share globally.
Photo Credit: gettyimages-stockseller_ukr
Categories: National