Payments for Ecosystem Services Schemes

Top PDF Payments for Ecosystem Services Schemes:

Transaction costs, communication and spatial coordination in Payment for Ecosystem Services schemes

Transaction costs, communication and spatial coordination in Payment for Ecosystem Services schemes

eliminated (i) any difference between high-cost and low-cost groups and (ii) subjects’ ability to use forward induction to guide their behavior in our network AB coordination game. Moreover, the transaction cost treatment is more interesting if it generates differences in the set of equilibria compared to when it just produces a difference in net payoffs. This leads to an interesting thought experiment: if a regulator wishes to increase participation or efficient localized coordination in an AB scheme for a given budget, is it better to spend this money on increasing the baseline (participation) subsidy, or on subsidizing the transactions costs that participants face (e.g. by providing free advice)? In our experiment, no real difference exists in the effects of these actions if the subsidy increase is equivalent for schemes X and Y, other than in the framing of the payments. But targeting the baseline subsidy increase at X only could increase the uptake of this land use relative to Y or non-participation by more than an equivalent reduction in transactions costs. Unfortunately, we were unable to test whether significant differences in desired spatial coordination emerge from such re-allocation of funds in the lab.

55 Read more

Payments for ecosystem services: from local to global

Payments for ecosystem services: from local to global

What are the advantages of our proposed de fi nition? First of all, most PES schemes actually pay for land uses associated with generating the service, which is to say, they are payments for ecosystem funds. The fund-service de fi nition makes this linkage explicit. Second, it rather nicely encompasses existing de fi nitions — for example, Fisher et al.'s (2008) de fi nition emphasizes the fund side, and the MEA de fi nition the service side. Our de fi nition emphasizes the fact that the two work together. The standard classi fi cations of supporting, regulating, cultural and provisioning services still hold as well; the fi rst three are obvious, while our de fi nition stresses that provisioning service is the capacity of ecosystem structure to reproduce itself, rather than the food, fi ber, fuel and water provided (all ecosystem goods). Reproduction in plants and animals occurs at a rate over time, cannot be stockpiled, and leads to qualitative change in the parent generation, not quantitative. Third, the de fi nition focuses on the fund-services' physical characteristics rather than their explicit value to humans. We simply lack adequate understanding of ecosystems to know which functions are of value to humans and which are not, and often only fi nd out after we have destroyed the ecosystem or species that provided them (Farley, 2008; Vatn and Bromley, 1994). Rather than leading to their commodi fi cation, de fi ning ecosystem services by their physical characteristics further emphasizes the fact that they do not blend readily with market

9 Read more

Costa Rica’s Payments for Ecosystem Services Program: Understanding the Implications of Implementing Targeting Mechanisms and Procurement Auctions on Cost-Effectiveness and Equity of Participation

Costa Rica’s Payments for Ecosystem Services Program: Understanding the Implications of Implementing Targeting Mechanisms and Procurement Auctions on Cost-Effectiveness and Equity of Participation

computational models (e.g. Lundberg et al. 2018) show that procurement auctions can be more cost-effective in obtaining environmental benefits than fixed price schemes. However, many of these studies examine the outcomes of one shot auctions, in which the bidders cannot learn from the results of prior auctions. In practice, on-going PES programs offer contracts in multiple rounds. If a procurement auction were used in each round, it would be possible for bidders to learn from the previous auction results. The information learned could help bidders determine information that is not disclosed to them such as the program budget, the maximum allowable bid, or the implementing agency’s assessment of environmental benefits that can be gained from land enrolled in the program (Klemperer 2002). Gaining this information could generate positive or negative results depending on how bidders use this information. For example, consider a landowner that has a parcel of land that can generate a high level of ecosystem services, but her cost of participation is high. She may think her costs are too high and not participate in the auction. However, if she learns that the maximum allowable bid is greater than her cost of participation that she may enter the auction. This is a positive result for the agency in that land where valuable ecosystem services can be generated will be conserved. However it is possible that learning can lead to negative results in that bidders can use information they learn to strategically change their bids to increase their informational rents (List and Shogren 1999, Klimek et al. 2008). As learning occurs over the years of a repeated auction, this could increase the homogeneity of bids, which would diminish the cost-effectiveness of an auction over time (Klimek et al. 2008, Schilizzi and Latacz-Lohmann 2007). This paper focuses on the use of information by bidders to strategically increase their bids, and thus their informational rents, resulting to a less cost-efficient outcome.

148 Read more

Transformative change through Payments for Ecosystem Services (PES): a conceptual framework and application to conservation agriculture in Malawi

Transformative change through Payments for Ecosystem Services (PES): a conceptual framework and application to conservation agriculture in Malawi

Many of the ecological and environmental challenges of our time require a systemic transformation from a ‘business as usual’ state, where environments are degraded, to a more desirable state where human–environment interactions are managed more sustainably. However, due to a variety of lock-ins, business as usual is often highly robust to change. Our concept here is that PES schemes have the unrecognized potential to act to disrupt the lock-ins and incentivize transformation. Our field study provides the logic. A rapid adoption of CA would quickly provide reduction in siltation rate. Adoption rates suggest that if the scheme was scaled up, it would drive a significant reduction in the amount of soil lost from fields that ends up blocking rivers and hydro- power schemes. If the electricity provider ESCOM ran the scheme, we estimate that it should cost between US$ 7 and US$ 2000 per ton of sediment avoided. Importantly for comparison, ESCOM estimates its own costs of sediment management (which involve equipment rental, dredging and scheduled shut- downs) on the order of US$ 150,000 per ton of sediment over the last year as of the time of writing [39]. Under even our most conservative assumptions, the cost of avoiding sedimenta- tion in the first place by encouraging CA as a land management practice is orders of magnitude lower than costs currently being borne by ESCOM. Even when considering the transaction costs that might be necessary for this type of scheme to be operationa- lized, Figure 2C is a realistic representation of the conditions that could occur soon after a roll-out of the scheme at scale.

8 Read more

Payments for ecosystem services and rural development: Landowners' preferences and potential participation in western Mexico

Payments for ecosystem services and rural development: Landowners' preferences and potential participation in western Mexico

Participation in PES schemes has been linked with higher income, off-land income, youth and education level and low levels of household debt (Dickinson et al. 2012; Dupraz et al. 2003; Greiner et al. 2003; Lambert et al. 2007; Loftus and Kraft, 2003, Petrzelka et al. 2012; Putten et al. 2011). Positive participation has also been related to larger property size (Kilgore et al. 2008; Ma et al. 2012, Putten et al., 2011), and also previous knowledge of the program and positive attitudes towards the environment (Ma et al. 2012; Putten et al. 2011). Landowners may have different reasons for owning their land and they may be positive about pro-conservation incentive programs as long as these do not conflict with their core interests or business objectives (Church and Ravenscroft, 2008; MacMillan and Phillip, 2010). In areas with more pro-development land use regulations, relatively lower participation in incentive-based conservation programs is expected since more profitable activities would be considered by landowners (Markowski-Lindsay et al. 2011).

24 Read more

Payments for Ecosystem Services Incentives and Adoption of Land Use Interventions in Uluguru Mountains, Tanzania

Payments for Ecosystem Services Incentives and Adoption of Land Use Interventions in Uluguru Mountains, Tanzania

DOI: 10.4236/as.2018.93022 301 Agricultural Sciences watersheds management in Uluguru Mountains in 2006 where degradation of watersheds was reported to be high [10]. A similar PES scheme was imple- mented to conserve wildlife in Simanjiro, Northern Tanzania and for forest re- duction in the Kilombero, Morogoro and wetlands catchment area. However, apart from its importance, PES schemes in developing countries including Tan- zania faced significant challenges from the beneficiaries due to the fact that some had have no clear direction on whether to adopt new technologies. This scenario was the result of various reasons which include weak institutions, missing mar- kets, high incidence of poverty and insecure land tenure [8] [11] [12] [13] [14]. Despite all these challenges, yet scholars believe that if PES is appropriately de- signed, it can be helpful to sustainably manage land and water resources at the same time contribute to poverty alleviation of rural communities through farm- ing [15].

18 Read more

Payments for Ecosystem Services: Mechanisms to Achieve Desired Landscape Patterns

Payments for Ecosystem Services: Mechanisms to Achieve Desired Landscape Patterns

18 being protected (Parkhurst and Shogren, 2008). PES schemes such as the agglomeration bonus, PDR easements, and fee simple acquisition are relatively flexible and can be used to meet diverse goals and objectives. TDR with zoning and mitigation banking may be less flexible due to the necessary government oversight to create markets, record transactions and monitor and enforce land use restrictions. The tendency for entrepreneurial mitigation banking to create larger contiguous ecosystem service to capture economies of scale decrease the flexibility for mitigation banking to meet landscape designs requiring several small preserves.

24 Read more

Towards the development of a UK Peatland Code: Payments for Ecosystem Services (PES) Pilot Research Project

Towards the development of a UK Peatland Code: Payments for Ecosystem Services (PES) Pilot Research Project

intermediaries to provide the market with confidence that investments will lead to measurable and additional benefits. The majority of buyers are likely to come from the same region, but such schemes do not necessarily exclude international buyers. MoorFutures in Germany and the Peatland Code are examples of guidance developed to facilitate regional carbon markets. The Register of UK Peatland Code Projects – the official record of the location of projects, the predicted and actual GHG emission reductions as well as the owners of that carbon. Restoration – a process that returns the conditions necessary for long term retention of semi- natural vegetation cover, with its typical species and habitats, to damaged peatland, reducing or halting carbon loss and allows peat accumulation to take place again, over the long-term. Restoration management may range from slight adjustments, such as reducing grazing and managed burning levels, to more substantial works such as rewetting to elevate the average annual water table through ditch blocking in formerly drained sites, or stabilising peat through re-vegetation of bare eroding peat.

117 Read more

Ecosystem services and the environment  In depth report 11 produced for the European Commission, DG Environment

Ecosystem services and the environment In depth report 11 produced for the European Commission, DG Environment

The intrinsic uncertainty in ecosystem services mapping is also illustrated by Schulp et al. (2014) who compared four well-known, published sets of ecosystem services maps of Europe for four different services: climate regulation, recreation potential, soil erosion protection and flood regulation. To compare the maps, the researchers used a Map Comparison Statistic (MCS). This was based on a scale from zero to one, where two identical maps score zero and two completely opposite maps score one. The results showed that the four of maps of climate regulation and those of recreation potential were in broad agreement within their sets, with MCS values of 0.28 or less. Pollination maps showed intermediate agreement, with MCS values ranging from 0.20– 0.49. Flood regulation and erosion protection maps showed the lowest levels of agreement, with MCS values of 0.17–0.53 for flood regulation and 0.26– 0.64 for erosion protection. These results do not reflect the accuracy of the maps but they do highlight the considerable variation between methods and uncertainty in ecosystem services mapping. Jacobs et al. (2015) discuss measures that can be used to improve the situation. They recommend that ecosystem services mapping projects, especially those that incorporate expert judgment, should follow the method of ‘confidence reporting’ used by the Intergovernmental Panel on Climate Change (IPCC). The IPCC method generates measures of confidence based both on scientific evidence itself and degree of agreement between researchers. Furthermore, models should be checked for reliability and validated using both primary data and expert opinion from different sources. Bayesian statistical models are likely to prove an important tool, as they can incorporate diverse data types (scores, primary data, datasets with missing data) and quantify accumulated uncertainties (Jacobs et al., 2015).

32 Read more

Sustainable drainage system site assessment method using urban ecosystem services

Sustainable drainage system site assessment method using urban ecosystem services

The ecosystem services are defined as the benefits gener- ated by nature that are beneficial to human well-being; phys- ically, mentally and socially (Daily et al. 1997; Costanza et al. 1998; de Groot et al. 2002; Millennium Ecosystem Assessment 2005; Boyd and Banzhaf 2007; Wallace 2007; Fisher et al. 2009; The Economics of Ecosystems and Biodiversity 2010; UK National Ecosystem Assessment 2011; Haines-Young et al. 2012; Hanson et al. 2012; Bastian et al. 2013; Scholz and Uzomah 2013). The ecosystem ser- vices concept stems from the ecosystem approach, and is jus- tified to be one of the many tools in the management of nature to protect the structures and functions of various ecosystems (Secretariat of the Convention on Biological Diversity 2004). With the new SuDS approach actively recommending the in- tegration of (predominately vegetated) SuDS techniques with other green infrastructures such as parks, nature reserves and gardens (Woods-Ballard et al. 2015), storm water manage- ment design, therefore, can now be undertaken both sus- tainably and also make active improvements to the eco- system of the entire catchment area, whilst offering social benefits to people living within the catchment (Woods- Ballard et al. 2015). This improvement to the SuDS ap- proach is a substantial improvement compared to both the LID and the WSUD approaches.

16 Read more

Mapping Agricultural Ecosystem Services across Scales

Mapping Agricultural Ecosystem Services across Scales

Additionally, prior reviews have found that the majority of studies are based on proxies and secondary data, applied at broad scales, without validation techniques, and map regulating services most commonly, followed by provisioning, cultural, and supporting services [24]. Such reviews end with a call to develop methods that deepening our understanding of the social–ecological processes behind the supply of ESS in order to improve our ability to map ESS for decision making. As such, recent literature has begun to integrate data information with different methods that create data regarding managers’ perceptions, improving the understanding of dynamic agricultural ecosystems. These methods include: remote sensing, biophysical modelling, agent based modelling, economic valuation, expert opinion, user preference, participatory mapping, and photo-elicitation. Each of these methods have their own strengths and limitations, outlined below – for example, biophysical modelling requires large quantitative datasets, while user preference data may have lower reproducibility. We conclude with a framework for designing ESS studies that collect mapping data at multiple scales, to create the most detailed study possible for managers to utilize in planning. 2. Materials and Methods

19 Read more

The effect of PFI commitments on local authority finances

The effect of PFI commitments on local authority finances

What our analysis indicates is that, in Scotland, a large number of local authorities have entered into arrangements which will commit them to increases significantly above the rate of inflation in the contributions that they will need to make to fund their contractual commitments to pay PFI unitary charges. Moreover, although complete information on authorities’ affordability assessments is not in the public domain, the information which is available indicates that a number of authorities in effect have cut corners in their affordability assessments, making assumptions which were unduly optimistic, or failing to assess fully the availability of funding over the whole life of the PFI contract. This means that many authorities will experience considerable difficulty in making their PFI contractual commitments, particularly since central government support to local authorities is likely to be progressively cut in real terms over the foreseeable future. The consequences, both in terms of an increasing squeeze on other local authority services, and in terms of pressure for steep council tax increases, are likely to be severe.

10 Read more

A decision framework for identifying models to estimate forest ecosystem services gains from restoration

A decision framework for identifying models to estimate forest ecosystem services gains from restoration

Reversing landscape degradation offers society many tan- gible benefits in the form of ecosystem services. Restoration has been used to increase water supplies, terrestrial carbon stocks, and aesthetic and cultural values (Marin-Spiotta et al. 2007; Chazdon 2008; Dodds et al. 2008). Reforested lands can produce timber and non-timber forest products (e.g., mushrooms, berries, and game animals) and offer new livelihood opportunities for forest-dependent communities. For instance, forest thinning and restoration in California’s Sierra Nevada increased streamflow water yields by up to 6 % over a 10-year period (Podolak et al. 2015). In Costa Rica, restored forests have supported ecotourism, offering more opportunities for forest recreation and wildlife watching (IUCN 2015b). Between 1985 and 2004, over 300,000 ha of Acacia and Miombo forests were restored in Shinyanga, Tanzania, following a near collapse of the ecosystem as part of tsetse fly eradication and cash crop- based agricultural expansion (Barrow 2014).

12 Read more

Ecosystem functions and services

Ecosystem functions and services

in the forest and there is no one around to hear it, does it still make a sound? Assume in this case that the “sound” is the ecosystem service. The answer to this old question obviously depends on how one defi nes “sound”. If “sound” is defi ned as the perception of sound waves by people, then the answer is no. If “sound” is defi ned as the pattern of physical energy in the air, then the answer is yes. In this second case, choices in both revealed and stated preference models would not refl ect the true benefi t of the ecosystem service. Another key challenge is accu- rately measuring the functioning of the system to correctly quantify the amount of a given service derived from that system 12 .

10 Read more

Economic Values of the Northern Territory Marine and Coastal Environments.

Economic Values of the Northern Territory Marine and Coastal Environments.

31 In the absence of other regionally relevant research, we use estimates from the last three studies to generate a range of ‘plausible’ estimates for use in the Northern Territory marine environment. For the lower-bound estimate, we multiply Delisle et al. (Forthcoming)’s lowest per-person estimate of the ‘values’ associated with the traditional hunting of dugong and turtle ($1,500) by the 35,000 Indigenous population living in regions that are adjacent to the coast (Figure 6). This gives us a ‘minimum’ estimate of value equal to $52.5m per annum. For the upper-bound estimate, we first multiply $11,300 by 35,000 ($395m). This is 25% of the money spent by the Australian Government on Indigenous welfare (a total $45,201 per person per year, (Steering Committee for the Review of Government Service Provision 2014); which is one-half of the amount, per person, used by Sangha et al. (2017), when valuing the socio-cultural services of an inland terrestrial estate. The logic for substituting Indigenous welfare expenditure for the value of services people accrue from their coastal and marine resources is that services such as healthy lives, early childhood learning and development, secure environment and welfare directly link to the coastal and marine resources (provided there are appropriate mechanisms and support structures). We then include an additional allowance for the role the marine environment plays in building and enhancing capabilities of Indigenous people. For example, the availability of natural resources (e.g. sea country) ensures that Indigenous people can manage their country, learn and pass- on their knowledge, skills and cultural practices to the next generation (Sangha and Russell-Smith 2017). Capability benefits of using and valuing natural resources are very rarely accounted for in peoples’ well-being because many valuation frameworks are based on western perspectives including the MA and TEEB

56 Read more

Managing Marine Ecosystem Services: A review of the Ecosystem Approach

Managing Marine Ecosystem Services: A review of the Ecosystem Approach

The use of reference points for non-target species and marine protected areas (MPAs) are both considered to be important tools in reducing the ecological effects of fishing. Historically, most regulatory effort has concentrated on commercially important species groups and it is only recently that non- target species have been considered as part of an ecosystem approach to fisheries management. Reference points can take the form of rearing success (chicks fledged per pair) as in the case of kittiwakes in the North Sea or as a limit on by-catch. For example, The Convention for the Protection of the Marine Environment of the North-East Atlantic (OSPAR, 2010) has established an ecological quality objective (EcoQO) for North Sea harbour porpoise by-catch as: “Annual by-catch levels should be reduced to levels below 1.7% of the best population estimate.” Hall (1999) considered the question of whether using reference points for a range of non-target species would achieve conservation of ecosystem integrity but the answer is no because as Hall (1999) admitted, such an approach would not encompass the range of impacts that fishing has on marine ecosystems.

85 Read more

Contributions of Cultural Services to the Ecosystem Services Agenda

Contributions of Cultural Services to the Ecosystem Services Agenda

Spiritual and religious services do not generalize well across communities (100, 109), and they are difficult to value in economic or monetary terms (7, 94). However, there are more comprehensive methods for studying spiritual and reli- gious ES, the way they are constructed and perceived, and their relation to land use and resource management. Many histori- cal and anthropological studies demon- strate the complexities of spiritual services (103, 105, 110), and hence may contribute to policies that avoid the trap of over- generalization and romanticization (100). Ecologists and ecological economists are increasingly adopting methods derived from history and social sciences to in- clude spiritual and religious services in their analyses. Examples are the Inte- grated History and Future of People on Earth project (111) and the discourse- based valuation methods proposed by Wilson and Howarth (112). In contrast to the other examples of cultural ES dis- cussed in this paper, efforts at monetary valuation of spiritual and religious services appear to be absent, even though the contribution these services could make to biodiversity protection has been recog- nized by scientists and policy makers (95).

8 Read more

Payments for Environmental Services in Costa Rica

Payments for Environmental Services in Costa Rica

well established, well-known within Costa Rica, and widely perceived as being very successful, resistance to payments is most likely due to a desire to free ride on the efforts of the government and other users. This is particularly likely to be true where multiple water users share the same watershed, or in the case of tourism industry, which is highly fragmented. It is noteworthy that all current payment agreements with water users are in watersheds where there is a single dominant user (Pagiola, 2002). 11 Moreover, some aspects of current PSA Program policies tend to discourage user payments. In the absence of direct agreements, users can count on some degree of conservation of their areas of interest through the payments made possible by government financing. When a direct agreement is reached, however, FONAFIFO generally charges all conservation payments in the area of interest to the user, which effectively increases the net cost of any incremental conservation (Tattenbach, pers. comm., 2005).

23 Read more

New methods for valuing, and for identifying spatial variations, in cultural services: a case study of the Great Barrier Reef

New methods for valuing, and for identifying spatial variations, in cultural services: a case study of the Great Barrier Reef

Numerous studies in recent decades have generated estimates of the monetary worth of various values associated with the GBR, although there have been many more studies of the services provided via markets (predominantly use values) where values are relatively easy to estimate (Stoeckl et al., 2011). Studies of non-use values are relatively sparse but include: a contingent valuation study of ‘vicarious’ users (tourists and Australian residents living outside the GBR catchment) (Hundloe, Vanclay, & Carter, 1987); a choice modelling study of the non-use value of an estuary within the GBR catchment (Windle & Rolfe, 2005); and an attempt to estimate the collective value of numerous community defined benefits, grouped together to represent either provisioning services, regulation and maintenance services, cultural services, or a mix of cultural and regulation and maintenance service (Stoeckl, Farr, Larson, et al., 2014). Thus, the existing body of research does much to highlight use values (that may be enhanced by development) but may fail to sufficiently highlight some of the CS (particularly the non-use ones) provided by the GBR that may be lost if the Reef is not conserved. As discussed earlier, failing to fully reflect all aspects of ES in a valuation may result in misguided policy decisions; hence the importance of estimating a value of the (non-use) CS provided by the GBR.

38 Read more

Using the urban landscape mosaic to develop and validate methods for assessing the spatial distribution of urban ecosystem service potential

Using the urban landscape mosaic to develop and validate methods for assessing the spatial distribution of urban ecosystem service potential

generated (Response). Measurement of ecosystem service generation provides a picture of how different ecosystem services are distributed across a landscape. Potschin and Haines-Young, (2013) state that the use of indicators based on landscape features is a common approach because ecosystem service generation can be characterised by biophysical properties. However, the review highlights that indicators of measurement need be more sophisticated than simple land cover maps because ecosystem services are fundamentally related to human activity as well as ecological processes (Muller and Burkhard, 2012). Pleasant et al. (2014) highlight the fact that challenges remain for cultural service measurement due to their non-market value and intangible nature, but frameworks have been altered to allow indicators that incorporate spatial criteria to these services (e.g. UKNEAFO, 2014). For example, by making measurements of environmental settings that provide the potential to produce a service rather than the specific service itself. Crossman et al. (2014) have also shown that there is demand for better attempts at validation of ecosystem service indicators to provide a measure of confidence that can be used to place research into a more scientific context.

294 Read more

Show all 10000 documents...

Related subjects