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Market-Based Instruments for Ecosystem Services between Discourse and Reality: An Economic and Narrative Analysis

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  • Géraldine Froger

    (LEREPS (Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux), Manufacture des Tabacs, 21 allée de Brienne, 31042 Toulouse Cedex, France
    Université de Toulouse-Jean Jaurès, 5 allée Antonio Machado, 31058 Toulouse Cedex 9, France)

  • Valérie Boisvert

    (IGD (Institut de géographie et durabilité), Université de Lausanne, Bâtiment Géopolis, Bureau 3522, CH-1015 Lausanne, Switzerland)

  • Philippe Méral

    (Institut de Recherche pour le Développement, IRD, UMR GRED (IRD–Université Montpellier 3 Paul Valery), BP 64501, 34394 Montpellier Cedex 5, France)

  • Jean-François Le Coq

    (ART-Dev, CIRAD, 73 rue Jean-François Breton, 34398 Montpellier Cedex 5, France)

  • Armelle Caron

    (AgroParisTech ENGREF, 19 Avenue du Maine Paris Cedex 15, 75732 Paris, France)

  • Olivier Aznar

    (UMR Métafort, VetAgroSup, 89 Avenue de l'Europe BP35, 63370 Lempdes, France)

Abstract

Since the mid-1990s, the concept of ecosystem services has become increasingly popular in academic circles and among decision-makers. Because of its inclusive character, this concept has given rise to different interpretations in economics. Since its inception, it has been associated with the development of market-based instruments (MBIs) in conservation policies. From this perspective, the sustainable provision of ecosystem services is hindered by market failures (e.g., public good attributes, externalities) and prices that do not capture the full value of the natural assets. MBIs are therefore recommended. According to their promoters, they provide powerful incentives to conserve the environment while at the same time offering new sources of income to support rural livelihoods. Our paper contends that different economic narratives, and associated representations of the market failure at stake with the provision of ecosystem services, may support different policy instruments that are all coined as MBIs. As an illustration, we analyze the economic discourse underlying payments for ecosystem services and eco-labels, and we underline the variety of institutional forms to which they give rise in order to emphasize the differences between discourse and practice.

Suggested Citation

  • Géraldine Froger & Valérie Boisvert & Philippe Méral & Jean-François Le Coq & Armelle Caron & Olivier Aznar, 2015. "Market-Based Instruments for Ecosystem Services between Discourse and Reality: An Economic and Narrative Analysis," Sustainability, MDPI, vol. 7(9), pages 1-17, August.
    • Handle: RePEc:gam:jsusta:v:7:y:2015:i:9:p:11595-11611:d:54736
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    Cited by:

    1. Taye, Fitalew Agimass & Folkersen, Maja Vinde & Fleming, Christopher M. & Buckwell, Andrew & Mackey, Brendan & Diwakar, K.C. & Le, Dung & Hasan, Syezlin & Ange, Chantal Saint, 2021. "The economic values of global forest ecosystem services: A meta-analysis," Ecological Economics, Elsevier, vol. 189(C).
    2. Bingham, Logan Robert, 2021. "Vittel as a model case in PES discourse: Review and critical perspective," Ecosystem Services, Elsevier, vol. 48(C).
    3. Valatin, G. & Ovando, P. & Abildtrup, J. & Accastello, C. & Andreucci, M.B. & Chikalanov, A. & El Mokaddem, A. & Garcia, S. & Gonzalez-Sanchis, M. & Gordillo, F. & Kayacan, B. & Little, D. & Lyubenova, 2022. "Approaches to cost-effectiveness of payments for tree planting and forest management for water quality services," Ecosystem Services, Elsevier, vol. 53(C).
    4. Rector, M.E. & Filgueira, R. & Grant, J., 2021. "Ecosystem services in salmon aquaculture sustainability schemes," Ecosystem Services, Elsevier, vol. 52(C).
    5. Borrello, M. & Cecchini, L. & Vecchio, R. & Caracciolo, F. & Cembalo, L. & Torquati, B., 2022. "Agricultural landscape certification as a market-driven tool to reward the provisioning of cultural ecosystem services," Ecological Economics, Elsevier, vol. 193(C).
    6. Miemie Struwig & Chris Adendorff, 2018. "Consumers' Perception of Eco-labels in South Africa," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 4(2), pages 163-178, April.

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    More about this item

    Keywords

    market-based instruments; ecosystem services; externalities; joint products; narratives; payments for ecosystem services; environmental certification;
    All these keywords.

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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