A global analysis of key design factors for sustainable payment for ecosystem services schemes

Payment for Ecosystem Service (PES) schemes are incentive-based mechanisms aimed at promoting sustainable land management and ecosystem conservation. While there is a wide diffusion of PES schemes, regional adaptation, governance, and long-term sustainability remain challenging. This study analyzes the key design factors influencing the effectiveness and adaptability of PES schemes in achieving environmental, social, and economic sustainability. We draw on 161 empirical PES cases and use a systematic framework based on: geographic location, ecosystem service type, spatial scale, temporal scale, type of compensation, presence of intermediaries, and business model. The sustainability outcome, assessed as a dependent variable, reflects the environmental, social, and economic performance of each PES case relative to its stated objectives and design attributes. Through frequency analysis, we identify common design factors in PES schemes. Water provisioning services are the most prevalent, and most PES schemes are implemented at a local scale with long-term agreements. Public-private and private-private business models are the most widely used, but their effectiveness depends on regional conditions. The role of intermediaries has fluctuated over time, experiencing a decline since 2010, yet they remain crucial in regions with complex governance structures, where they facilitate coordination and agreement management. Additionally, a Gephi network visualization is used as a co-occurrence mapping tool to explore how these factors interact to enhance sustainability in different dimensions, revealing three dominant PES design types that align with geographical location priorities and socioeconomic conditions. We also observe regional variations in PES design: High-income countries tend to prioritize long-term cultural services, while low- and middle-income countries focus on short-term provisioning needs. Our findings highlight the importance of context-specific PES models, long-term institutional and financial commitments, and well-structured compensation mechanisms to ensure sustainability. This review intends to assist PES designers and policy and decision-makers in developing PES schemes better tailored to contemporary challenges and opportunities.