Payment for Forest Environmental Services and Household Energy Consumption Trajectory: The case of Lam Dong Province, Vietnam

This research examines the impact of the Payment for Forest Environmental Services (PFES) program in Viet Nam on household income and its interaction with energy consumption behavior. A mixed-method approach was employed, including focus group discussions, interviews with households, program managers, local authorities in Lâm Đồng province, and analysis of household income data from the Viet Nam Living Standard Surveys (VHLSS). Findings show that PFES participation does increase household income, but not significantly. There is a clear shift in energy use patterns among households following energy stacking theory; however, this transition is not driven solely by income but also by factors such as education level, primary occupation, and awareness of clean energy benefits. The study recommends improving the PFES scheme by raising payment caps, adjusting electricity pricing policies for PFES participants, and integrating awareness-raising and education on clean energy transition.