IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v164y2019ic40.html
   My bibliography  Save this article

Deriving double dividends through linking payments for ecosystem services to environmental entrepreneurship: The case of the invasive weed Lantana camara

Author

Listed:
  • Ranjan, Ram

Abstract

A payment for ecosystem services mechanism is designed to support an environmental enterprise aimed at controlling Lantana camara, an invasive weed that is costly to eradicate. A forest reserve manager engages the local community in lantana control efforts. The community converts the weeds into household durable items for sale. However, as markets for such products may not account for the environmental services generated through weed control, the enterprise could fail for want of additional financial support. The challenge addressed in this paper is to incorporate the full environmental benefits of the weed-based enterprise and provide adequate compensation to the local community. An optimal compensation mechanism is derived through linking the ecological dimension of weed growth to its impact on biodiversity values within the reserve. Results indicate that optimal payments to the community would need to take into consideration both the value addition to the environment from controlling the invasive weed and the opportunity cost of participation by the community. When there exists a risk of enterprise failure due to low profitability, higher payments by the manager are required. However, the best environmental outcomes are obtained when the manager incorporates the welfare of the local community within the utility function.

Suggested Citation

  • Ranjan, Ram, 2019. "Deriving double dividends through linking payments for ecosystem services to environmental entrepreneurship: The case of the invasive weed Lantana camara," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    • Handle: RePEc:eee:ecolec:v:164:y:2019:i:c:40
    DOI: 10.1016/j.ecolecon.2019.106380
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800918313211
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecolecon.2019.106380?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mark E. Eiswerth & G. Cornelis van Kooten, 2002. "Uncertainty, Economics, and the Spread of an Invasive Plant Species," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1317-1322.
    2. Hejnowicz, Adam P. & Raffaelli, David G. & Rudd, Murray A. & White, Piran C.L., 2014. "Evaluating the outcomes of payments for ecosystem services programmes using a capital asset framework," Ecosystem Services, Elsevier, vol. 9(C), pages 83-97.
    3. Kunegel-Lion, Melodie & Goodsman, Devin W. & Lewis, Mark A., 2019. "When managers forage for pests: Implementing the functional response in pest management," Ecological Modelling, Elsevier, vol. 396(C), pages 59-73.
    4. Geetha Ramaswami & Raman Sukumar, 2013. "Long-Term Environmental Correlates of Invasion by Lantana camara (Verbenaceae) in a Seasonally Dry Tropical Forest," PLOS ONE, Public Library of Science, vol. 8(10), pages 1-7, October.
    5. Richard D. Horan & Charles Perrings & Frank Lupi & Erwin H. Bulte, 2002. "Biological Pollution Prevention Strategies under Ignorance:The Case of Invasive Species," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1303-1310.
    6. Horan, Richard D. & Melstrom, Richard T., 2011. "No sympathy for the devil," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 367-385.
    7. Finnoff, David & Horan, Richard D. & Shogren, Jason F. & Reeling, Carson & Berry, Kevin, 2016. "Natural vs anthropogenic risk reduction: Facing invasion risks involving multi-stable outcomes," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PB), pages 113-123.
    8. Verma, Madhu & Negandhi, Dhaval & Khanna, Chandan & Edgaonkar, Advait & David, Ashish & Kadekodi, Gopal & Costanza, Robert & Gopal, Rajesh & Bonal, Bishan Singh & Yadav, Satya Prakash & Kumar, Sanjay, 2017. "Making the hidden visible: Economic valuation of tiger reserves in India," Ecosystem Services, Elsevier, vol. 26(PA), pages 236-244.
    9. David Finnoff & Chris McIntosh & Jason F. Shogren & Charles Sims & Travis Warziniack, 2010. "Invasive Species and Endogenous Risk," Annual Review of Resource Economics, Annual Reviews, vol. 2(1), pages 77-100, October.
    10. Wu, JunJie, 2001. "Optimal weed control under static and dynamic decision rules," Agricultural Economics, Blackwell, vol. 25(1), pages 119-130, June.
    11. 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, vol. 65(4), pages 788-798, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhongcheng Yan & Feng Wei & Yaru Chen & Xin Deng & Yanbin Qi, 2020. "The Policy of Ecological Forest Rangers (EFRs) for the Poor: Goal Positioning and Realistic Choices—Evidence from the Re-Employment Behavior of EFRs in Sichuan, China," Land, MDPI, vol. 9(9), pages 1-27, August.
    2. Lin, Yongsheng & Dong, Zhanfeng & Zhang, Wei & Zhang, Hongyu, 2020. "Estimating inter-regional payments for ecosystem services: Taking China’s Beijing-Tianjin-Hebei region as an example," Ecological Economics, Elsevier, vol. 168(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olson, Lars J., 2006. "The Economics of Terrestrial Invasive Species: A Review of the Literature," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), pages 1-17, April.
    2. Warziniack, Travis W. & Finnoff, David & Shogren, Jason F., 2013. "Public economics of hitchhiking species and tourism-based risk to ecosystem services," Resource and Energy Economics, Elsevier, vol. 35(3), pages 277-294.
    3. Batabyal, Amitrajeet A. & Beladi, Hamid, 2006. "International trade and biological invasions: A queuing theoretic analysis of the prevention problem," European Journal of Operational Research, Elsevier, vol. 170(3), pages 758-770, May.
    4. Finnoff, David & Potapov, Alexei & Lewis, Mark A., 2010. "Control and the management of a spreading invader," Resource and Energy Economics, Elsevier, vol. 32(4), pages 534-550, November.
    5. Amit Batabyal & Peter Nijkamp, 2005. "On Container Versus Time Based Inspection Policies in Invasive Species Management," ERSA conference papers ersa05p162, European Regional Science Association.
    6. L. Joe Moffitt & John K. Stranlund & Craig D. Osteen, 2009. "Securing the Border from Invasives: Robust Inspections Under Severe Uncertainty," Working Papers 2009-6, University of Massachusetts Amherst, Department of Resource Economics.
    7. Richard D. Horan & David Finnoff & Kevin Berry & Carson Reeling & Jason F. Shogren, 2018. "Managing Wildlife Faced with Pathogen Risks Involving Multi-Stable Outcomes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(3), pages 713-730, July.
    8. Benjamin S. Thompson, 2021. "Corporate Payments for Ecosystem Services in Theory and Practice: Links to Economics, Business, and Sustainability," Sustainability, MDPI, vol. 13(15), pages 1-18, July.
    9. Melstrom, Richard T., 2014. "Managing apparent competition between the feral pigs and native foxes of Santa Cruz Island," Ecological Economics, Elsevier, vol. 107(C), pages 157-162.
    10. Lovell, Sabrina J. & Stone, Susan F. & Fernandez, Linda, 2006. "The Economic Impacts of Aquatic Invasive Species: A Review of the Literature," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(1), pages 1-14, April.
    11. Hyytiäinen, Kari & Lehtiniemi, Maiju & Niemi, Jarkko K. & Tikka, Kimmo, 2013. "An optimization framework for addressing aquatic invasive species," Ecological Economics, Elsevier, vol. 91(C), pages 69-79.
    12. Burnett, Kimberly & Kaiser, Brooks & Pitafi, Basharat A. & Roumasset, James, 2006. "Prevention, Eradication, and Containment of Invasive Species: Illustrations from Hawaii," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(1), pages 63-77, April.
    13. Sims, Charles & Finnoff, David, 2013. "When is a “wait and see” approach to invasive species justified?," Resource and Energy Economics, Elsevier, vol. 35(3), pages 235-255.
    14. Koo, Won W. & Mattson, Jeremy W., 2004. "Economics Of Detection And Control Of Invasive Species: Workshop Highlights," Special Reports 23068, North Dakota State University, Center for Agricultural Policy and Trade Studies.
    15. Brooks Kaiser & Kimberly Burnett & James Roumasset, 2006. "Control of Invasive Species: Lessons from Miconia in Hawaii," Working Papers 200608, University of Hawaii at Manoa, Department of Economics.
    16. Carrasco, Luis Roman & Baker, R & MacLeod, A & Knight, J. D. & Mumford, J. D., 2009. "Optimal and robust control of invasive alien species spreading in homogeneous landscapes," MPRA Paper 57757, University Library of Munich, Germany.
    17. Haight, Robert G. & Polasky, Stephen, 2010. "Optimal control of an invasive species with imperfect information about the level of infestation," Resource and Energy Economics, Elsevier, vol. 32(4), pages 519-533, November.
    18. Ram Ranjan & James Shortle, 2017. "Protecting and Restoring Aquatic Ecosystems in Multiple Stressor Environments," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 1-28, April.
    19. Ola, Oreoluwa & Menapace, Luisa & Benjamin, Emmanuel & Lang, Hannes, 2019. "Determinants of the environmental conservation and poverty alleviation objectives of Payments for Ecosystem Services (PES) programs," Ecosystem Services, Elsevier, vol. 35(C), pages 52-66.
    20. Huth, William L. & McEvoy, David M. & Morgan, O. Ashton, 2018. "Controlling an Invasive Species through Consumption: The Case of Lionfish as an Impure Public Good," Ecological Economics, Elsevier, vol. 149(C), pages 74-79.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:164:y:2019:i:c:40. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.