Incentive programs to encourage farmers and other landowners to protect the environment are key to conservation, but new research shows issues such as lack of enforcement undermine their effectiveness on a global scale.
These programs, called Payments for Environmental Services (PES), are a way to improve environmental management and livelihoods by attaching a dollar value to the benefits nature provides, such as clean water and air. They have been in place for two decades, but their design and cost-effectiveness are a concern for experts.
Incentive programs to encourage farmers and other landowners to protect the environment are key to conservation, but new research shows issues such as lack of enforcement undermine their effectiveness on a global scale.
These programs, called Payments for Environmental Services (PES), are a way to improve environmental management and livelihoods by attaching a dollar value to the benefits nature provides, such as clean water and air. They have been in place for two decades, but their design and cost-effectiveness are a concern for experts.
Roy Brouwer, professor of economics at the University of Waterloo, co-authored the study with researchers from Peru, Brazil, France, Germany and Spain. They analyzed data from programs on six continents aimed at preserving watersheds, forests and biodiversity. Their findings appear in Nature Sustainability.
“Besides monitoring issues and prohibitive transaction costs, limited sanctioning and enforcement such as fines and penalties for not meeting agreed goals may be another important factor undermining the effectiveness of PES,” said Brouwer, also executive director of the Water Institute at Waterloo.”Many of the schemes, especially in the developing world, have multiple objectives, environmental and social ones such as poverty alleviation. There often exists a trade-off between these objectives.”
Read more at University of Waterloo
