Swallow, Brent and Leimona, Beria and Yatich, Thomas and Velarde, Sandra J. (2010): The conditions for functional mechanisms of compensation and reward for environmental services. Published in: Ecology and Society , Vol. 4 (6), No. 15 (October 2010)
Download (67kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||The conditions for functional mechanisms of compensation and reward for environmental services|
|Keywords:||carbon sequestration; ecosystem services; ecotourism; environmental services; institutional change; payments for environmental services; watershed services|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q57 - Ecological Economics: Ecosystem Services; Biodiversity Conservation; Bioeconomics; Industrial Ecology
|Depositing User:||Sandra Velarde|
|Date Deposited:||03. Nov 2010 08:58|
|Last Modified:||12. Feb 2013 03:50|
Barrantes, G., and L. Gamez. 2007. Practical applications in the internalization and payments of environmental services related to drinking water. Presentation at the Global Event on Payments/Rewards for Environmental Services. Lombok, Indonesia, January 22-27, 2007. [online] URL: http://www.worldagroforestry.org/sea/portals/2/lombok/material/presentation/day1/session3/LGamez.pdf.
Biryahwaho, B. 2006. Pro-poor compensation for environmental services: trees for global benefits programme of Ecotrust Uganda. Presentation to the African Regional Workshop on Compensation for Ecosystem Serivces, May 24-25, 2006. World Agroforestry Centre, Nairobi, Kenya.
Castro, R., F. Tattenbach, L. Gamez, and N. Olson. 2000. The Costa Rican experience with market instruments to mitigate climate change and conserve biodiversity. Environmental Monitoring and Assessment 61:75-92.
Demsetz, H. 1967. Toward a theory of property rights. American Economic Review 57(2):347-359.
Espaldon, V. 2005. Looking through the eyes of the future: Rewarding Upland Poor for Environmental Services (RUPES) in the Philippines. RUPES Working Paper, World Agroforestry Centre Southeast Asia, Bogor, Indonesia.
Food and Agriculture Organization (FAO). 2007. The state of food and agriculture 2007: paying farmers for environmental services. Food and Agriculture Organization of the United Nations, Rome, Italy.
Gichohi, H. W. 2003. Direct payments as a mechanism for conserving important wildlife corridor links between Nairobi National Park and its wider ecosystem: The Wildlife Conservation Lease Program. Paper presented at the Fifth World Parks Congress, Durban, South South Africa.
Grossman, S. J., and O. D. Hart. 1986. The costs and benefits of ownership: a theory of vertical and lateral integration. The Journal of Political Economy 94(4):691.
Jindal, R., B. Swallow, and J. Kerr. 2008. Carbon sequestration projects in Africa: potential benefits and challenges. Natural Resource Forum 32(2):116-130.
Jordan, A., R. Wurzel, A. Zito, and L. Bruckner. 2003. European governance and the transfer of "new" environmental policy instruments (NEPIs) in the European Union. Public Administration 81(3):555-574.
Kern, K., H. Jörgens, and M. Jänicke. 2001. The diffusion of environmental policy innovations: a contribution to the globalization of environmental policy. Social Science Research Centre, Berlin, Germany.
Khan, A. 2006. Working for Water Programme: towards ensuring voluntary payments for ecosystem services. Presentation at the African Regional Workshop on Compensation for Ecosystem Services, May 2006. World Agroforestry Centre, Nairobi, Kenya.
Kingdon, J. W. 1984. Agendas, alternatives, and public policies. Little Brown, Boston, Massachusetts, USA.
Kosoy, N., M. Martinez-Tuna, R. Muradian, and J. Martinez-Alier. 2007. Payments for environmental services in watersheds: insights from a comparative study of three cases in Central America. Ecological Economics 61(2-3):446-455.
Millennium Ecosystem Assessment. 2005. Ecosystems and human well-being: synthesis report. Island Press, Washington, D.C., USA.
Moreno, G. B. 2006. Economic valuation of water supply as a key environmental service provided by montane oak forest watershed areas in Costa Rica. Pages 435-446 in M. Kappelle, editor. Ecology and conservation of neotropical Montane Oak Forests. Springer-Verlag, Berlin, Heidelberg, Germany.
Nelson, R. R., and S. G. Winter. 1982. An evolutionary theory of economic change. Harvard University Press, Cambridge, Massachusetts, USA.
North, D. C. 1994. Constraints on institutional innovation: transaction costs, incentive compatibility, and historical considerations. Pages 48-70 in V. W. Ruttan, editor. Agriculture, environment and health: sustainable development in the 21st century. University of Minnesota Press, Minneapolis, Minnesota, USA.
Ochieng, B., B. O. Otiende, and R. Rumley, editors. 2007. Report on the Africa Regional Workshop on Compensation for Ecosystem Services. World Agroforestry Centre and African Centre for Technology Studies, Nairobi, Kenya.
Organization for Economic Cooperation and Development (OECD). 2004. Tradeable permits: policy evaluation, design and reform. OECD Publishing, Paris, France.
Organization for Economic Cooperation and Development (OECD). 2005. Nutrient trading: a water quality solution? OECD Publishing, Paris, France.
Pagiola, S., A. Arcenas, and G. Platais. 2005. Can payments for environmental services help reduce poverty? An exploration of the issues and the evidence to date from Latin America. World Development 33(2):237-253.
Pagiola, S., E. Ramírez, J. Gobbi, C. de Haan, M. Ibrahim, E. Murgueitio, and J. P. Ruíz. 2007. Paying for the environmental services of silvopastoral practices in Nicaragua. Ecological Economics 64(15):374-385.
Peltzman, S. 1976. Toward a more general theory of regulation. Journal of Law and Economics 19(2):211.
Pigou, A. C. 1920. Economics of welfare. Macmillan, London, UK.
Poats, S. V., editor. 2007. Report on the Latin America Regional Workshop on Compensation for Environmental Services and Poverty Alleviation in Latin America. Corporacion Grupo Randi Randi and World Agroforestry Centre, Nairobi, Kenya and Quito, Ecuador.
Postel, S., and B. H. Thompson. 2005. Watershed protection: capturing the benefits of nature';s water supply services. Natural Resources Forum 29:98-108.
Raju, K. V., S. Puttaswamaiah, M. Sekher, and R. Rumley, editors. 2007. Report on the Asia Regional Workshop on Compensation for Ecosystem Services. Institute for Social and Economic Change and World Agroforestry Centre, Bangalore, India and Nairobi, Kenya.
Sanchez-Azofeifa, G. A., A. Pfaff, J. A. Robalino, and J. P. Boomhower. 2007. Costa Rica's payment for environmental services program: intention, implementation and impact. Conservation Biology 21(5):1165-1173.
Swallow, B., M. Kallesoe, U. Iftikhar, M. van Noordwijk, C. Bracer, S. Scherr, V. Raju, S. Poats, A. Duraiappah, B. Ochieng, H. Mallee, and R. Rumley. 2009. Compensation and rewards for environmental services in the developing world: framing pan-tropical analysis and comparison. Ecology and Society 14(2):26. [online] URL: http://www.ecologyandsociety.org/vol14/iss2/art26/.
Turpie, J. K., C. Marais, and J. N. Blignaut. 2008. The Working for Water Programme: evolution of a payments for ecosystem services mechanism that addresses both poverty and ecosystem service delivery in South Africa. Ecological Economics 65(4):788-798.
Wunder, S. 2005. Payments for environmental services: some nuts and bolts. CIFOR Occasional Paper No. 42. Centre for International Forestry Research, Bogor, Indonesia.
Wunder, S., and M. Alban. 2008. Decentralized payments for environmental services: the cases of Pimampiro and PROFAFOR in Ecuador. Ecological Economics 65(4):685-698