Principles for fairness and efficiency in enhancing environmental services in Asia. Payments, compensation or co-investment?
June, 2011. Meine van Noordwijk and Beria Leimona. Policy Brief. World Agroforestry Centre (ICRAF) Philippines. 6 pages
Based on their action research in Asia in the Rewarding Upland Poor for Environmental Services they provide (RUPES) program since 2002, they examine three paradigms: “Commoditized ES (CES)”, “Compensation for Opportunities Skipped (COS)”, and “Co-Investment in (Environmental) Stewardship (CIS)”. Among the RUPES action research sites, there are several examples of CIS, i.e. co-investment in and shared responsibility for stewardship, with a focus on “assets” (natural + human + social capital) that can be expected to provide future flows of ES. CES, equivalent to a strict definition of PES, may represent an abstraction rather than a current reality. COS is a challenge when the legality of opportunities to reduce ES is contested.
The term ‘payments for environmental services’ has rapidly gained popularity, with its focus on market-based mechanisms for enhancing environmental services. Current use of the term, however, covers a broad spectrum of interactions between environmental services’ suppliers and beneficiaries.
A broader class of mechanisms pursues enhancement of environmental services through compensation or rewards. Such mechanisms can be analysed on the basis of how they meet four conditions: realistic, conditional, voluntary and pro-poor.
The Rewarding Upland Poor for Environmental Services (RUPES) program has been examining such mechanisms throughout Asia since 2002.
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Keywords: Other Publications, s. Economic valuation & PES, Asia, CES, CIS, COS, environmental, PES, poor, RUPES, services