Show Me the Money: Do Payments Supply Environmental Services in Developing Countries?

  title={Show Me the Money: Do Payments Supply Environmental Services in Developing Countries?},
  author={Subhrendu K. Pattanayak and Sven Wunder and Paul J. Ferraro},
  journal={Review of Environmental Economics and Policy},
  pages={254 - 274}
Many of the services supplied by nature are externalities. Economic theory suggests that some form of subsidy or contracting between the beneficiaries and the providers could result in an optimal supply of environmental services. Moreover, if the poor own resources that give them a comparative advantage in the supply of environmental services, then payments for environmental services (PES) can improve environmental and poverty outcomes. While the theory is relatively straightforward, the… 

The Effectiveness of Payments for Environmental Services

Do Payments Pay Off? Evidence from Participation in Costa Rica’s PES Program

Despite the substantial cash transfers to voluntary participants in this program, it is found that there is no evidence of impacts on their wealth or self-reported well-being using a quasi-experimental design, consistent with the common claim that voluntary PES do not harm participants.

Additionality from Payments for Environmental Services with Technology Diffusion

Because payments for environmental services (PES) often subsidize practices that offer latent private benefits, there are concerns that PES programs may provide little additional environmental

Payments for Environmental Services: Revisiting the Theoretical Baseline Assumptions

The concept of payments for environmental services (PES) has its theoretical roots in neoclassical welfare economics. The concept suggests that the degradation of environmental resources is linked to

PES, markets and property rights: a comment on Wunder's revisited concept of PES and a proposal of conceptual framework

Payments for Environmental Services (PES) are often described as market-based instruments as they are used to change relative prices, and therefore to provide incentives. Following the line of

Effectiveness of Payment for Environmental Services programs in Mexico

Payment for Environmental Services (PES) Programs in Latin America and Mexico have dominated the market-based environmental policy realm in the past decade due to their new paradigm for solving the

From Polluter Pays to Provider Gets: Distribution of Rights and Costs under Payments for Ecosystem Services

Should society have the right to freely available clean air and water, or should people be required to pay for these as commodities just as they do for many other goods or services that they consume?



Payments for environmental services and the poor: concepts and preliminary evidence

  • S. Wunder
  • Economics
    Environment and Development Economics
  • 2008
ABSTRACT Based on observations from all three tropical continents, there is good reason to believe that poor service providers can broadly gain access to payment for environmental services (PES)

Microeconomic Analysis of Innovative Environmental Programs in Developing Countries

  • J. Vincent
  • Economics
    Review of Environmental Economics and Policy
  • 2010
Environmental management programs that attempt to cope with institutional weaknesses in developing countries by being less reliant on governments’ formal regulatory apparatus are becoming

When could payments for environmental services benefit the poor?

ABSTRACT Since modification of agricultural production choices in developing countries often provides positive environmental externalities to people in developed countries, payment for environmental

Alternative Pollution Control Policies in Developing Countries

  • A. Blackman
  • Economics
    Review of Environmental Economics and Policy
  • 2010
Weak environmental regulatory institutions in developing countries often undermine conventional command-and-control pollution control policies. As a result, these countries are increasingly

The role of deforestation risk and calibrated compensation in designing payments for environmental services

ABSTRACT This paper discusses the gain in efficiency from including deforestation risk as a targeting criterion in payments for environmental services (PES) programs. We contrast two payment schemes

Payments for ecosystem services and poverty reduction: concepts, issues, and empirical perspectives

Paying for the provision of environmental services is a recent policy innovation attracting much attention in both developed and developing countries. This innovation, referred to as ‘payments for

Regional Review of Payments for Watershed Services: Sub-Saharan Africa

This review of African Payment for Watershed Services (PWS) schemes describes ongoing and proposed initiatives, and describes the factors that cause Africa to have far fewer PWS initiatives than