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Building Institutions to Trade Ecosystem Services: Marketing Forest Carbon in Mexico

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  • Corbera, Esteve
  • Brown, Katrina

Abstract

Summary This paper analyzes institutional design, organizational capacity, and interplay in markets for ecosystem services. It examines the development of a market-based mechanism to commercialize forest carbon in Mexico through the Clean Development Mechanism (CDM). This is compared with a State-run carbon forestry program aiming to provide emission rights to voluntary, retail-based, carbon markets. Marketing forest carbon is hampered by lack of organizational capacity in government and civil society, uncertainties in the international policy process, and the interplay with existing common property institutions in rural Mexico. The paper identifies theoretical and practical barriers to implementing institutional arrangements for forest carbon trading.

Suggested Citation

  • Corbera, Esteve & Brown, Katrina, 2008. "Building Institutions to Trade Ecosystem Services: Marketing Forest Carbon in Mexico," World Development, Elsevier, vol. 36(10), pages 1956-1979, October.
    • Handle: RePEc:eee:wdevel:v:36:y:2008:i:10:p:1956-1979
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    References listed on IDEAS

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    2. Munoz-Pina, Carlos & de Janvry, Alain & Sadoulet, Elisabeth, 2003. "Recrafting Rights over Common Property Resources in Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 52(1), pages 129-158, October.
    3. Katrina Brown & Esteve Corbera, 2003. "Exploring equity and sustainable development in the new carbon economy," Climate Policy, Taylor & Francis Journals, vol. 3(sup1), pages 41-56, November.
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    5. Franck Lecocq & Karan Capoor, "undated". "State and Trends of the Carbon Market 2005," World Bank Publications - Reports 13411, The World Bank Group.
    6. Pagiola, Stefano & Arcenas, Agustin & Platais, Gunars, 2005. "Can Payments for Environmental Services Help Reduce Poverty? An Exploration of the Issues and the Evidence to Date from Latin America," World Development, Elsevier, vol. 33(2), pages 237-253, February.
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    Cited by:

    1. Jennifer M. Alix-Garcia & Elizabeth N. Shapiro & Katharine R. E. Sims, 2012. "Forest Conservation and Slippage: Evidence from Mexico’s National Payments for Ecosystem Services Program," Land Economics, University of Wisconsin Press, vol. 88(4), pages 613-638.
    2. Van Hecken, Gert & Bastiaensen, Johan & Windey, Catherine, 2015. "The frontiers of the debate on Payments for Ecosystem Services: a proposal for innovative future research," IOB Discussion Papers 2015.05, Universiteit Antwerpen, Institute of Development Policy (IOB).
    3. Wells, Geoff & Fisher, Janet A. & Porras, Ina & Staddon, Sam & Ryan, Casey, 2017. "Rethinking Monitoring in Smallholder Carbon Payments for Ecosystem Service Schemes: Devolve Monitoring, Understand Accuracy and Identify Co-benefits," Ecological Economics, Elsevier, vol. 139(C), pages 115-127.
    4. Elinor Ostrom, 2016. "Nested Externalities and Polycentric Institutions: Must We Wait for Global Solutions to Climate Change Before Taking Actions at Other Scales?," Studies in Economic Theory, in: Graciela Chichilnisky & Armon Rezai (ed.), The Economics of the Global Environment, pages 259-276, Springer.
    5. Pascual, Unai & Muradian, Roldan & Rodríguez, Luis C. & Duraiappah, Anantha, 2010. "Exploring the links between equity and efficiency in payments for environmental services: A conceptual approach," Ecological Economics, Elsevier, vol. 69(6), pages 1237-1244, April.
    6. Reynolds, Travis W., 2012. "Institutional Determinants of Success Among Forestry-Based Carbon Sequestration Projects in Sub-Saharan Africa," World Development, Elsevier, vol. 40(3), pages 542-554.
    7. Emily Anderson & Hisham Zerriffi, 2012. "Seeing the trees for the carbon: agroforestry for development and carbon mitigation," Climatic Change, Springer, vol. 115(3), pages 741-757, December.
    8. Kosoy, Nicolás & Corbera, Esteve, 2010. "Payments for ecosystem services as commodity fetishism," Ecological Economics, Elsevier, vol. 69(6), pages 1228-1236, April.
    9. Neitzel, K. Christoph & Caro-Borrero, Angela Piedad & Revollo-Fernandez, Daniel & Aguilar-Ibarra, Alonso & Ramos, Alya & Almeida-Leñero, Lucia, 2014. "Paying for environmental services: Determining recognized participation under common property in a peri-urban context," Forest Policy and Economics, Elsevier, vol. 38(C), pages 46-55.
    10. Pierre Mokondoko & Robert H Manson & Taylor H Ricketts & Daniel Geissert, 2018. "Spatial analysis of ecosystem service relationships to improve targeting of payments for hydrological services," PLOS ONE, Public Library of Science, vol. 13(2), pages 1-27, February.
    11. Cecilia Luttrell & Erin Sills & Riza Aryani & Andini Desita Ekaputri & Maria Febe Evinke, 2018. "Beyond opportunity costs: who bears the implementation costs of reducing emissions from deforestation and degradation?," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(2), pages 291-310, February.
    12. Kneteman Christie & Green Andrew, 2009. "The Twin Failures of the CDM: Recommendations for the "Copenhagen Protocol"," The Law and Development Review, De Gruyter, vol. 2(1), pages 225-256, October.
    13. Elinor Ostrom, 2014. "A Polycentric Approach For Coping With Climate Change," Annals of Economics and Finance, Society for AEF, vol. 15(1), pages 97-134, May.
    14. Prokofieva, Irina & Gorriz, Elena, 2013. "Institutional analysis of incentives for the provision of forest goods and services: An assessment of incentive schemes in Catalonia (north-east Spain)," Forest Policy and Economics, Elsevier, vol. 37(C), pages 104-114.
    15. Hadrian Cook & Laurence Couldrick & Laurence Smith, 2017. "An Assessment of Intermediary Roles in Payments for Ecosystem Services Schemes in the Context of Catchment Management: An Example from South West England," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 19(01), pages 1-31, March.
    16. Aryal, Kishor & Maraseni, Tek & Apan, Armando, 2023. "Spatial dynamics of biophysical trade-offs and synergies among ecosystem services in the Himalayas," Ecosystem Services, Elsevier, vol. 59(C).
    17. Makkonen, Marika & Huttunen, Suvi & Primmer, Eeva & Repo, Anna & Hildén, Mikael, 2015. "Policy coherence in climate change mitigation: An ecosystem service approach to forests as carbon sinks and bioenergy sources," Forest Policy and Economics, Elsevier, vol. 50(C), pages 153-162.

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