In 1985, aerial surveys showed that Costa Rica's forest cover had fallen to approximately 24 percent of the country's land area. The rate of deforestation was among the highest in the world. The forest was going down for cattle ranching and timber extraction that had accelerated steadily through the 1970s.
By 2024, forest cover had risen to approximately 60 percent.
Costa Rica became the first tropical country to reverse deforestation, and the mechanism deserves attention, because it was not primarily a national parks policy. The recovery happened outside park boundaries, on private land, and the reason was a 1997 law called the Payments for Environmental Services program.
The logic was direct and, at the time, controversial: forests provide services that have measurable economic value, including carbon sequestration, watershed protection, and biodiversity. But under standard land economics, a landowner who converts forest to pasture captures the value of the pasture. The services the forest was providing simply disappear, uncompensated. The PES program changed this by paying landowners directly for maintaining or regenerating forest on their land. The forest became, economically, worth keeping.
It worked. Between 1997 and 2015, the program contributed to offsetting approximately 166 million tonnes of CO2 equivalent emissions from deforestation. Since 2013, Costa Rica's land-use sector has been a net carbon sink. The country grew its economy while growing its forest, which critics of conservation economics had argued was structurally impossible.
Costa Rica is small, politically stable, and has a functional legal system, none of which are universal conditions. But the core result transfers beyond its specific context: forests recover when the economic forces pushing them down are removed and replaced with different ones. The trees have always wanted to grow. Human accounting systems determine whether they're permitted to.
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