Interventions in payment for ecosystem services (PES) programs can involve both collective and individual actions. This study explores the potential for the development of payment for water related ecosystem services (PWES) program in the Lake Naivasha basin, Kenya. Using a choice experiment approach, the willingness to accept compensation is estimated for three water-related ecosystem services (WES) attributes: one collective attribute (reforestation) and two individual attributes (environment-friendly agricultural practices and restoration of riparian land). Moreover, the preferences of upstream farm households are analysed with regard to sub-basins where a PWES program has already been implemented and sub-basins where it has not been implemented so far. For sub-basins where PWES has already been implemented, environment-friendly agricultural practices is the only significant attribute for local farmers' choice to improve WES. Reforestation and environment friendly agricultural practices are significant attributes for sub-basins where PWES has not been implemented so far. Farm households are willing to accept compensation but there appears to be heterogeneity in preferences for WES attributes. We find differences in farm households' preferences and values for collective and individual actions. Therefore, contrary to the current norm in PES interventions with a uniform compensation scheme, we recommend conservation payments to vary among ecosystem service providers.
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