Payments for Ecosystem Services: Private and Public Funding to Avoid Risks to Ecosystem Services

Abstract

To date, different types of PES approaches co-exist. There are various fruitful examples for innovative and successful design and implementation around the world. Governmental activities are highly important for PES. The social-ecological context must be considered during the design and implementation process. A PES design is not only a technical tool for effective and economically optimal ecosystem services provision. It also needs to be created with multiple aspects of social justice and equity in mind. A policy mix that includes PES is important for ecosystem services risk management. Depending on the given social-ecological context conditions, the use of economic incentives to influence human behaviour and the use of trade mechanisms to allocate resources can be a cost-effective and socially accepted approach, if combined with other policy instruments. Progress in ecosystem services quantification could promote the development of more output-based payment schemes. Intermediaries that are active on a regional level are often key players for PES development and implementation. Their participation should thus be encouraged.