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Payments for forest-based environmental services: A close look

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  • Zhang, Daowei

Abstract

In this paper, I look at Payments for Environmental Services (PES) under property protection rules and in consideration of the marketability of these services. I then investigate the joint production process of timber and environmental services and identify a critical choice facing the buyers of forest environmental services—either incurring transaction costs by studying the opportunity costs of landowners and the environmental benefits their lands could provide, or losing efficiencies by paying some landowners free money and by not being able to induce socially desirable land use changes. Finally, I compare PES with other policy and market mechanisms that encourage the provisions of environmental services.

Suggested Citation

  • Zhang, Daowei, 2016. "Payments for forest-based environmental services: A close look," Forest Policy and Economics, Elsevier, vol. 72(C), pages 78-84.
    • Handle: RePEc:eee:forpol:v:72:y:2016:i:c:p:78-84
    DOI: 10.1016/j.forpol.2016.06.017
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    References listed on IDEAS

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    Cited by:

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    3. Nichiforel, Liviu & Keary, Kevin & Deuffic, Philippe & Weiss, Gerhard & Thorsen, Bo Jellesmark & Winkel, Georg & Avdibegović, Mersudin & Dobšinská, Zuzana & Feliciano, Diana & Gatto, Paola & Gorriz Mi, 2018. "How private are Europe’s private forests? A comparative property rights analysis," Land Use Policy, Elsevier, vol. 76(C), pages 535-552.
    4. Ryo Kohsaka & Yuta Uchiyama, 2022. "Status and Trends in Forest Environment Transfer Tax and Information Interface between Prefectures and Municipalities: Multi-Level Governance of Forest Management in 47 Japanese Prefectures," Sustainability, MDPI, vol. 14(3), pages 1-16, February.
    5. Mutandwa, Edward & Grala, Robert K. & Petrolia, Daniel R., 2019. "Estimates of willingness to accept compensation to manage pine stands for ecosystem services," Forest Policy and Economics, Elsevier, vol. 102(C), pages 75-85.
    6. Khan, M. Ali, 2016. "On a forest as a commodity and on commodification in the discipline of forestry," Forest Policy and Economics, Elsevier, vol. 72(C), pages 7-17.
    7. Luo, Li & Gao, Yuan & Regan, Courtney M. & Summers, David M. & Connor, Jeffery D. & O'Hehir, Jim & Meng, Li & Chow, Christopher W.K., 2024. "Emissions offset incentives, carbon storage and profit optimization for Australian timber plantations," Forest Policy and Economics, Elsevier, vol. 159(C).

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