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Supplementing REDD+ with Biodiversity Payments: The Paradox of Paying for Multiple Ecosystem Services

Listed author(s):
  • Jonah Busch
Registered author(s):

    An international mechanism to reduce emissions from deforestation using carbon payments (REDD+) can be leveraged to make payments for forests’ biodiversity as well. Paradoxically, under conditions consistent with emerging REDD+ programs, money spent on a mixture of carbon payments and biodiversity payments has the potential to incentivize the provision of greater climate benefits than an equal amount of money spent only on carbon payments. This paradoxical result arises when diversifying payments across multiple services allows a funding agency to spend less on additional rents to existing suppliers of avoided deforestation and more on incentivizing the participation of new suppliers.

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    File URL: http://le.uwpress.org/cgi/reprint/89/4/655
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    Article provided by University of Wisconsin Press in its journal Land Economics.

    Volume (Year): 89 (2013)
    Issue (Month): 4 ()
    Pages: 655-675

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    Handle: RePEc:uwp:landec:v:89:y:2013:iv:1:p:655-675
    Contact details of provider: Web page: http://le.uwpress.org/

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    1. Stoneham, Gary & Chaudhri, Vivek & Ha, Arthur & Strappazzon, Loris, 2003. "Auctions for conservation contracts: an empirical examination of Victoria’s BushTender trial," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), December.
    2. Gary Stoneham & Vivek Chaudhri & Arthur Ha & Loris Strappazzon, 2003. "Auctions for conservation contracts: an empirical examination of Victoria's BushTender trial," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), pages 477-500, December.
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