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The conditions for functional mechanisms of compensation and reward for environmental services

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  • Swallow, Brent
  • Leimona, Beria
  • Yatich, Thomas
  • Velarde, Sandra J.

Abstract

Mechanisms of compensation and reward for environmental services (CRES) are becoming increasingly contemplated as means for managing human–environment interactions. Most of the functional mechanisms in the tropics have been developed within the last 15 years; many developing countries still have had little experience with functional mechanisms. We consider the conditions that foster the origin and implementation of functional mechanisms. Deductive and inductive approaches are combined. Eight hypotheses are derived from theories of institution and policy change. Five case studies, from Latin America, Africa, and Asia, are then reviewed according to a common framework. The results suggest the following to be important conditions for functional CRES mechanisms: (1) localized scarcity for particular environmental services, (2) influence from international environmental agreements and international organizations, (3) government policies and public attitudes favoring a mixture of regulatory and marketbased instruments, and (4) security of individual and group property rights.

Suggested Citation

  • Swallow, Brent & Leimona, Beria & Yatich, Thomas & Velarde, Sandra J., 2010. "The conditions for functional mechanisms of compensation and reward for environmental services," MPRA Paper 26308, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:26308
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    File URL: https://mpra.ub.uni-muenchen.de/26308/1/MPRA_paper_26308.pdf
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    References listed on IDEAS

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    1. Pagiola, Stefano & Arcenas, Agustin & Platais, Gunars, 2005. "Can Payments for Environmental Services Help Reduce Poverty? An Exploration of the Issues and the Evidence to Date from Latin America," World Development, Elsevier, vol. 33(2), pages 237-253, February.
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    5. Kosoy, Nicolas & Martinez-Tuna, Miguel & Muradian, Roldan & Martinez-Alier, Joan, 2007. "Payments for environmental services in watersheds: Insights from a comparative study of three cases in Central America," Ecological Economics, Elsevier, vol. 61(2-3), pages 446-455, March.
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    Citations

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    Cited by:

    1. Schomers, Sarah & Matzdorf, Bettina, 2013. "Payments for ecosystem services: A review and comparison of developing and industrialized countries," Ecosystem Services, Elsevier, vol. 6(C), pages 16-30.
    2. Paunić, Alida, 2016. "Brazil, Preservation of Forest and Biodiversity," MPRA Paper 71462, University Library of Munich, Germany.
    3. Grima, Nelson & Singh, Simron J. & Smetschka, Barbara & Ringhofer, Lisa, 2016. "Payment for Ecosystem Services (PES) in Latin America: Analysing the performance of 40 case studies," Ecosystem Services, Elsevier, vol. 17(C), pages 24-32.
    4. Grima, Nelson & Singh, Simron J. & Smetschka, Barbara, 2018. "Improving payments for ecosystem services (PES) outcomes through the use of Multi-Criteria Evaluation (MCE) and the software OPTamos," Ecosystem Services, Elsevier, vol. 29(PA), pages 47-55.
    5. Ina, Porras & Bruce, Alyward & Jeff, Dengel, 2013. "Monitoring payments for watershed services schemes in developing countries," MPRA Paper 47185, University Library of Munich, Germany.
    6. Geheb, Kim & Mapedza, Everisto, 2008. "The political ecologies of bright spots," Book Chapters,, International Water Management Institute.
    7. Gissi, Elena & Garramone, Vito, 2018. "Learning on ecosystem services co-production in decision-making from role-playing simulation: Comparative analysis from Southeast Europe," Ecosystem Services, Elsevier, vol. 34(PB), pages 228-253.
    8. Ma, Zhao & Bauchet, Jonathan & Steele, Diana & Godoy, Ricardo & Radel, Claudia & Zanotti, Laura, 2017. "Comparison of Direct Transfers for Human Capital Development and Environmental Conservation," World Development, Elsevier, vol. 99(C), pages 498-517.
    9. Hao Wang & Sander Meijerink & Erwin van der Krabben, 2020. "Institutional Design and Performance of Markets for Watershed Ecosystem Services: A Systematic Literature Review," Sustainability, MDPI, vol. 12(16), pages 1-26, August.
    10. Le Coq, Jean-François & Froger, Geraldine & Pesche, Denis & Legrand, Thomas & Saenz, Fernando, 2015. "Understanding the governance of the Payment for Environmental Services Programme in Costa Rica: A policy process perspective," Ecosystem Services, Elsevier, vol. 16(C), pages 253-265.
    11. Geheb, Kim & Mapedza, Everisto, 2008. "The political ecologies of bright spots," IWMI Books, Reports H041593, International Water Management Institute.

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    More about this item

    Keywords

    carbon sequestration; ecosystem services; ecotourism; environmental services; institutional change; payments for environmental services; watershed services;
    All these keywords.

    JEL classification:

    • 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
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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