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Exploring the links between equity and efficiency in payments for environmental services: A conceptual approach

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  • Pascual, Unai
  • Muradian, Roldan
  • Rodríguez, Luis C.
  • Duraiappah, Anantha

Abstract

This paper addresses the relationship between equity and efficiency in PES schemes from a conceptual point of view. Emphasis is placed on the role of the institutional setting, social perceptions about economic fairness (or distributive justice of the payments), uncertainty and interactions between agents, including power relations. We introduce the heuristic concept of the 'efficiency-equity interdependency curve' to illustrate potential combinations between equity and efficiency that may be theoretically possible. The paper argues that different types of institutional factors determine which equity-efficiency combinations may be potentially feasible, influence the actual combination that will be achieved on the ground, and condition possible changes in that combination due to exogenous factors. By stressing the role of institutional aspects in shaping the equity-efficiency relationship, the paper attempts to go beyond the dominant Coasean vision of PES.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 69 (2010)
Issue (Month): 6 (April)
Pages: 1237-1244

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Handle: RePEc:eee:ecolec:v:69:y:2010:i:6:p:1237-1244

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Web page: http://www.elsevier.com/locate/ecolecon

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Keywords: Equity-efficiency relationship Economic fairness Distributive justice PES;

References

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  1. Leopoldo Dimas & Susan Kandel & Deborah Barry & Herman Rosa, 2004. "Compensation for Environmental Services and Rural Communities: Lessons from the Americas," Working Papers, Political Economy Research Institute, University of Massachusetts at Amherst wp96, Political Economy Research Institute, University of Massachusetts at Amherst.
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  4. Turpie, J.K. & Marais, C. & Blignaut, J.N., 2008. "The working for water programme: Evolution of a payments for ecosystem services mechanism that addresses both poverty and ecosystem service delivery in South Africa," Ecological Economics, Elsevier, Elsevier, vol. 65(4), pages 788-798, May.
  5. Wunder, Sven & Albán, Montserrat, 2008. "Decentralized payments for environmental services: The cases of Pimampiro and PROFAFOR in Ecuador," Ecological Economics, Elsevier, Elsevier, vol. 65(4), pages 685-698, May.
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  9. Pagiola, Stefano, 2006. "Payments for Environmental Services in Costa Rica," MPRA Paper 2010, University Library of Munich, Germany.
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  20. Kosoy, Nicolas & Martinez-Tuna, Miguel & Muradian, Roldan & Martinez-Alier, Joan, 2007. "Payments for environmental services in watersheds: Insights from a comparative study of three cases in Central America," Ecological Economics, Elsevier, Elsevier, vol. 61(2-3), pages 446-455, March.
  21. Muradian, Roldan & Corbera, Esteve & Pascual, Unai & Kosoy, Nicolás & May, Peter H., 2010. "Reconciling theory and practice: An alternative conceptual framework for understanding payments for environmental services," Ecological Economics, Elsevier, Elsevier, vol. 69(6), pages 1202-1208, April.
  22. Swallow, B. & Kallesoe, M. & Iftikhar, U. & Noordwijk, M. van & Bracer, C. & Scherr, S. & Raju, K.V. & Poats, S. & Ochieng, B. & Mallee, H. & Rumley, R., 2007. "Compensation and rewards for environmental services in the developing world framing pan-tropical analysis and comparison," Working Papers, World Agroforestry Centre, Library Department b14963, World Agroforestry Centre, Library Department.
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Citations

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Cited by:
  1. Narloch, Ulf & Drucker, Adam G. & Pascual, Unai, 2011. "Payments for agrobiodiversity conservation services for sustained on-farm utilization of plant and animal genetic resources," Ecological Economics, Elsevier, Elsevier, vol. 70(11), pages 1837-1845, September.
  2. Kosoy, Nicolás & Corbera, Esteve, 2010. "Payments for ecosystem services as commodity fetishism," Ecological Economics, Elsevier, Elsevier, vol. 69(6), pages 1228-1236, April.
  3. Rojas Lara, Teresa, 2012. "Payments for Environmental Services: A Peruvian Case Study," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil, International Association of Agricultural Economists 126807, International Association of Agricultural Economists.
  4. Holland, Luke M. & Doole, Graeme J., 2014. "Implications of fairness for the design of nitrate leaching policy for heterogeneous New Zealand dairy farms," Agricultural Water Management, Elsevier, vol. 132(C), pages 79-88.
  5. Fisher, Brendan & Kulindwa, Kassim & Mwanyoka, Iddi & Turner, R. Kerry & Burgess, Neil D., 2010. "Common pool resource management and PES: Lessons and constraints for water PES in Tanzania," Ecological Economics, Elsevier, Elsevier, vol. 69(6), pages 1253-1261, April.
  6. Rhona F. Barr & Salvatore Di Falco & Susana Mourato, 2011. "Income diversification, social capital and their potential role in uptake of marine Payments for Environmental Services schemes: a study from a Tanzanian fishing community," Grantham Research Institute on Climate Change and the Environment Working Papers, Grantham Research Institute on Climate Change and the Environment 65, Grantham Research Institute on Climate Change and the Environment.
  7. Vatn, Arild, 2010. "An institutional analysis of payments for environmental services," Ecological Economics, Elsevier, Elsevier, vol. 69(6), pages 1245-1252, April.
  8. John Lynham, 2012. "Ecomarkets For Conservation And Sustainable Development in the Coastal Zone," Working Papers, University of Hawaii at Manoa, Department of Economics 201218, University of Hawaii at Manoa, Department of Economics.
  9. Muradian, Roldan & Corbera, Esteve & Pascual, Unai & Kosoy, Nicolás & May, Peter H., 2010. "Reconciling theory and practice: An alternative conceptual framework for understanding payments for environmental services," Ecological Economics, Elsevier, Elsevier, vol. 69(6), pages 1202-1208, April.
  10. Börner, Jan & Wunder, Sven & Wertz-Kanounnikoff, Sheila & Tito, Marcos Rügnitz & Pereira, Ligia & Nascimento, Nathalia, 2010. "Direct conservation payments in the Brazilian Amazon: Scope and equity implications," Ecological Economics, Elsevier, Elsevier, vol. 69(6), pages 1272-1282, April.
  11. Venghaus, Sandra & Selbmann, Kirsten, 2014. "Biofuel as social fuel: Introducing socio-environmental services as a means to reduce global inequity?," Ecological Economics, Elsevier, Elsevier, vol. 97(C), pages 84-92.
  12. Legrand, Thomas & Froger, Géraldine & Le Coq, Jean-François, 2013. "Institutional performance of Payments for Environmental Services: An analysis of the Costa Rican Program," Forest Policy and Economics, Elsevier, Elsevier, vol. 37(C), pages 115-123.
  13. Joel Scriven, 2012. "Developing REDD+ policies and measures from the bottom-up for the buffer zones of Amazonian protected areas," Environment, Development and Sustainability, Springer, Springer, vol. 14(5), pages 745-765, October.
  14. Norgaard, Richard B., 2010. "Ecosystem services: From eye-opening metaphor to complexity blinder," Ecological Economics, Elsevier, Elsevier, vol. 69(6), pages 1219-1227, April.
  15. Rodríguez, Luis C. & Pascual, Unai & Muradian, Roldan & Pazmino, Nathalie & Whitten, Stuart, 2011. "Towards a unified scheme for environmental and social protection: Learning from PES and CCT experiences in developing countries," Ecological Economics, Elsevier, Elsevier, vol. 70(11), pages 2163-2174, September.

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