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Fairly efficient, efficiently fair: Lessons from designing and testing payment schemes for ecosystem services in Asia

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  • Leimona, Beria
  • van Noordwijk, Meine
  • de Groot, Rudolf
  • Leemans, Rik

Abstract

Payment for ecosystem services (PES) is commonly defined as a market-based environmental policy instrument to efficiently achieve ecosystem services provision. However, an increasing body of literature shows that this prescriptive conceptualization of PES cannot be easily generalized and implemented in practice, and that the commodification of ecosystem services (ES) is problematic and may lead to unfair situations for relevant PES actors. This paper synthesizes case studies in Indonesia, the Philippines and Nepal to provide empirical observations on emerging PES mechanisms in Asia. Lessons learned show that fairness and efficiency objectives must be achieved simultaneously in designing and implementing a sustainable PES scheme, especially in developing country contexts. Neither fairness nor efficiency is a primary aim but an intermediate ‘fairly efficient and efficiently fair’ PES may bridge the gap between PES theory and practice to increase sustainable ES provision and improve livelihoods.

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  • Leimona, Beria & van Noordwijk, Meine & de Groot, Rudolf & Leemans, Rik, 2015. "Fairly efficient, efficiently fair: Lessons from designing and testing payment schemes for ecosystem services in Asia," Ecosystem Services, Elsevier, vol. 12(C), pages 16-28.
  • Handle: RePEc:eee:ecoser:v:12:y:2015:i:c:p:16-28
    DOI: 10.1016/j.ecoser.2014.12.012
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    1. McGrath, F.L. & Carrasco, L.R. & Leimona, B., 2017. "How auctions to allocate payments for ecosystem services contracts impact social equity," Ecosystem Services, Elsevier, vol. 25(C), pages 44-55.
    2. Duong, Ngoc T.B. & de Groot, Wouter T., 2018. "Distributional risk in PES: Exploring the concept in the Payment for Environmental Forest Services program, Vietnam," Forest Policy and Economics, Elsevier, vol. 92(C), pages 22-32.
    3. Chapman, Mollie & Satterfield, Terre & Wittman, Hannah & Chan, Kai M.A., 2020. "A payment by any other name: Is Costa Rica’s PES a payment for services or a support for stewards?," World Development, Elsevier, vol. 129(C).
    4. Brownson, Katherine & Guinessey, Elizabeth & Carranza, Marcia & Esquivel, Manrique & Hesselbach, Hilda & Madrid Ramirez, Lucia & Villa, Luis, 2019. "Community-Based Payments for Ecosystem Services (CB-PES): Implications of community involvement for program outcomes," Ecosystem Services, Elsevier, vol. 39(C).
    5. Chu, Long & Quentin Grafton, R. & Keenan, Rodney, 2019. "Increasing Conservation Efficiency While Maintaining Distributive Goals With the Payment for Environmental Services," Ecological Economics, Elsevier, vol. 156(C), pages 202-210.
    6. Rodríguez-Robayo, Karla Juliana & Merino-Perez, Leticia, 2017. "Contextualizing context in the analysis of payment for ecosystem services," Ecosystem Services, Elsevier, vol. 23(C), pages 259-267.
    7. Benjamin S. Thompson, 2019. "Payments for ecosystem services and corporate social responsibility: Perspectives on sustainable production, stakeholder relations, and philanthropy in Thailand," Business Strategy and the Environment, Wiley Blackwell, vol. 28(4), pages 497-511, May.
    8. McNie, Elizabeth C. & Parris, Adam & Sarewitz, Daniel, 2016. "Improving the public value of science: A typology to inform discussion, design and implementation of research," Research Policy, Elsevier, vol. 45(4), pages 884-895.
    9. Giulia Irene Wegner, 2016. "Payments for ecosystem services (PES): a flexible, participatory, and integrated approach for improved conservation and equity outcomes," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 18(3), pages 617-644, June.
    10. Haile, Kaleab K. & Tirivayi, Nyasha & Tesfaye, Wondimagegn, 2019. "Farmers’ willingness to accept payments for ecosystem services on agricultural land: The case of climate-smart agroforestry in Ethiopia," Ecosystem Services, Elsevier, vol. 39(C).
    11. Koessler, Ann-Kathrin & Engel, Stefanie, 2019. "Policies as information carriers: How environmental policies may change beliefs and consequent behavior," EconStor Preprints 195522, ZBW - Leibniz Information Centre for Economics.
    12. Geussens, Katrien & Van Den Broeck, Goedele & Vanderhaegen, Koen & Verbist, Bruno & Maertens, Miet, 2018. "Farmers' perspectives on payments for watershed services in Uganda," Working Papers 276470, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    13. Ochoa. M, W. Santiago & Härtl, Fabian H. & Paul, Carola & Knoke, Thomas, 2019. "Cropping systems are homogenized by off-farm income – Empirical evidence from small-scale farming systems in dry forests of southern Ecuador," Land Use Policy, Elsevier, vol. 82(C), pages 204-219.
    14. 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.
    15. CGIAR Research Program on Water, Land and Ecosystems, 2015. "Groundwater and ecosystem services: a framework for managing smallholder groundwater-dependent agrarian socio-ecologies - applying an ecosystem services and resilience approach," IWMI Books, International Water Management Institute, number 208414, December.
    16. Leimona, Beria & Lusiana, Betha & van Noordwijk, Meine & Mulyoutami, Elok & Ekadinata, Andree & Amaruzaman, Sacha, 2015. "Boundary work: Knowledge co-production for negotiating payment for watershed services in Indonesia," Ecosystem Services, Elsevier, vol. 15(C), pages 45-62.
    17. Geussens, K. & Van den Broeck, G. & Vanderhaegen, K. & Verbist, B. & Maertens, M., 2019. "Farmers’ perspectives on payments for ecosystem services in Uganda," Land Use Policy, Elsevier, vol. 84(C), pages 316-327.
    18. van Noordwijk, Meine, 2019. "Integrated natural resource management as pathway to poverty reduction: Innovating practices, institutions and policies," Agricultural Systems, Elsevier, vol. 172(C), pages 60-71.
    19. van den Belt, Marjan & Stevens, Sharon M., 2016. "Transformative agenda, or lost in the translation? A review of top-cited articles in the first four years of Ecosystem Services," Ecosystem Services, Elsevier, vol. 22(PA), pages 60-72.
    20. Yonariza, & Andini, Bevi Astika & Mahdi, & Maynard, Simone, 2019. "Addressing knowledge gaps between stakeholders in payments for watershed services: Case of Koto Panjang hydropower plant catchment area, Sumatra, Indonesia," Ecosystem Services, Elsevier, vol. 39(C).

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