Payment For Environmental Services: The Concept And Its Applications
Author: Priyanka Upreti

This paper reviews the concept and applications of Payment for Environmental Services (PES). Payment for environmental services (PES) is an increasingly popular policy instrument in the developing countries. PES is a market-based approach to conservation financing based on the twin principles that those who benefit from environmental services should pay for them, and that those who contribute to generating these services should be compensated for providing them. PES has helped Costa Rica, once known as having one of the world's highest deforestation rates, to achieve negative net deforestation in the early 2000s. The impact of this program can be seen in terms of increased forest cover, improved water quality, more carbon sequestration, conservation of biodiversity and more employment opportunities for workers. In India, examples of PES can be seen only at the local level in the villages of Himachal Pradesh and Sikkim. A review of studies has given which aimed to determine the willingness to pay of people for particular environmental services. But Insecure and ill-defined property rights, lack of sufficient credit and technical services to farmers and the existing socio-economic, religious and political differences can be the challenges against implementation of PES in India. In order to secure active involvement and support from Government of India for large scale projects, more research in both natural and social sciences need to be undertaken on relevant PES models and strengthening of institutions and capacity building is also required.

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About Author / Additional Info:
PhD scholar, IARI, New Delhi