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Book (stand-alone)Putting Payments for Environmental Services in the Context of Economic Development 2006
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No results found.Paying for the provision of environmental services is a recent policy innovation that is attracting much attention in both developed and developing countries. The innovation involves a move away from command and control environmental policies, harnessing market forces to obtain more efficient environmental outcomes. Linking payments for environmental services (PES) to economic development and poverty reduction is an issue of importance since they may represent a new source of finance to developi ng countries, and developing countries are potentially important suppliers of global environmental services. The objective of this paper is to apply economic concepts, particularly those from natural resource and environmental economics, to a wide range of issues associated with the introduction of ES programs in the context of economic development. We introduce a typology of ES based upon economic reasoning, showing that payments for ES provide a solution to externalities and public good proble ms within the bounds of political economic constraints. Secondly, we focus on the problem of who should pay for ES: to what extent are payments likely to be covered within a global framework rather within a national or regional framework? Third, we will turn to issues of program design. We present some answers to the questions of how to target payments to achieve their objectives efficiently, and what the implications of alternative design schemes are. In particular, we focus upon the equity imp lications of ES programs and how can they affect poverty alleviation. The final section addresses issues of monitoring and enforcement of ES contracts, and we summarize the key findings in the conclusion. -
DocumentRelevance of OECD Agri-Environmental Measures for Remuneration of Positive Externalities / Payments for Environmental Services
Stakeholders Consultation From Payment of Environmental Externalities to Remuneration of Positive Externalities in the Agriculture and Food Sector FAO, Rome, 27-28 September 2010
2010Also available in:
No results found.This paper reviews the development of agri-environmental policies in the European Union and other OECD countries, both in historical terms and in terms of the characteristics and challenges of different approaches. The process of reforming the EU’s Common Agricultural Policy, and in particular the likely increased emphasis on payment for public goods (positive externalities and environmental services), is also reviewed. Key issues from the OECD experience are highlighted, including: the problem of indentifying the level of provision of public goods and the resulting focus on payment of prescriptions not outputs; the issue of cost-effectiveness of schemes and the balance between targeted schemes and schemes based on land-use systems; and the need for other policy measures, including research and training, to provide a base and supportive framework on which RPE/PES schemes can be built. The experience with private-sector or market-led solutions is also reviewed. Finally, some key points for the development of schemes elsewhere are identified. -
DocumentPayments for environmental services
What role in sustainable agricultural development?
2011Also available in:
No results found.PES is but one of many different instruments that can complement and stimulate an enabling policy environment for sustainable agricultural development. Currently the role of PES programmes in supporting sustainable agricultural development is quite limited. Recent surveys of the literature documenting PES experiences highlight three main features of such programmes as they are currently being implemented: (1) most do not demonstrate additionality and suffer from a lack of appropriate targeting; (2) most are designed with multiple objectives; and (3) most remain primarily or entirely funded by the public sector. In this paper, we argue that a public-sector-driven process of building PES programme readiness, which includes building partnerships with the private sector, is key to realizing the potential of this policy instrument to support sustainable agricultural development. Our analysis indicates three important areas where public-sector involvement could improve the capacity of PES pr ogrammes to support sustainable agricultural development: (1) reducing transaction costs and fostering replication; (2) providing an enabling policy environment; and (3) ensuring equity and capturing multiple benefits. While there is considerable potential for changes within agricultural production systems to generate environmental services, to realize their benefits, in most cases, PES programmes will need to be implemented across large numbers of producers and areas to realize economies of sca le in transaction costs and risk management. At the same time they must be designed to support flexibility required in livelihoods and equity issues in rural communities.
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