Arriagada, R. and C. Perrings
For over fifty years economists have developed instruments to address the market failures behind the collapse of ecosystem services reported by the Millennium Ecosystem Assessment (MA). These instruments include taxes, subsidies, user-charges, access-fees, penalties for non- compliance, and more recently, payments for ecosystem services (PES). PES schemes offer financial incentives for local actors to provide a wide range of ecosystem services untouched by normal market transactions. This Policy Brief explores the factors that make PES schemes work.
Arizona State University