Context Matters: Exploring the Cost-effectiveness of Fixed Payments and Procurement Auctions for PES
Successfully implemented payment for ecosystem services (PES) programs can provide both conservation of nature and financial support to rural communities. In this paper, we explore how PES programs can be designed so as to maximize the amount of additional ecosystem services provided for a given b...
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Elsevier, Ámsterdam (Países Bajos)
2020
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| Acceso en línea: | https://repositorio.catie.ac.cr/handle/11554/9507 |
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RepoCATIE95072021-12-22T19:09:49Z Context Matters: Exploring the Cost-effectiveness of Fixed Payments and Procurement Auctions for PES Lundberg, Liv U. Martin, Persson Alpízar, Francisco Lindgren, Kristian SERVICIOS ECOSISTEMICOS CONSERVACION DE LA NATURALEZA FINANCIAMIENTO SUBASTAS PAISAJE IMPACTO AMBIENTAL BENEFICIOS VIABILIDAD RENTABILIDAD BIENES PUBLICOS Successfully implemented payment for ecosystem services (PES) programs can provide both conservation of nature and financial support to rural communities. In this paper, we explore how PES programs can be designed so as to maximize the amount of additional ecosystem services provided for a given budget. We also provide a brief summary of the use of auction mechanisms in real world PES programs. To explore the potential additionality of different PES program designs we use a conceptual agent based simulation model where payments are either fixed, or set through a uniform or discriminatory auction. The program can also be designed to target payments to land-owners based on their provision of ecosystem services. Theoretically, auctions should be the most effective design, especially if payments are differentiated and targeted by ecosystem service provision. However, what we find is that the context in which the PES program is implemented—baseline compliance with program standards among the participants, correlation between opportunity costs and ecosystem services in the landscape, heterogeneity in costs and budget size—has a determining impact on the relative effectiveness of the different payment designs, with fixed payments schemes being much more effective than auctions in certain settings. Our findings suggest that context should be taken into serious consideration when a PES program design is chosen. 2020-08-21T22:39:37Z 2020-08-21T22:39:37Z 2018-04 Artículo doi.org/10.1016/j.ecolecon.2017.11.021 https://repositorio.catie.ac.cr/handle/11554/9507 en Ecological Economics Volumen 146 (April 2018), pages 347-358 info:eu-repo/semantics/openAccess application/pdf Elsevier, Ámsterdam (Países Bajos) |
| institution |
Centro Agronómico Tropical de Investigación y Enseñanza |
| collection |
Repositorio CATIE |
| language |
Inglés |
| topic |
SERVICIOS ECOSISTEMICOS CONSERVACION DE LA NATURALEZA FINANCIAMIENTO SUBASTAS PAISAJE IMPACTO AMBIENTAL BENEFICIOS VIABILIDAD RENTABILIDAD BIENES PUBLICOS |
| spellingShingle |
SERVICIOS ECOSISTEMICOS CONSERVACION DE LA NATURALEZA FINANCIAMIENTO SUBASTAS PAISAJE IMPACTO AMBIENTAL BENEFICIOS VIABILIDAD RENTABILIDAD BIENES PUBLICOS Lundberg, Liv U. Martin, Persson Alpízar, Francisco Lindgren, Kristian Context Matters: Exploring the Cost-effectiveness of Fixed Payments and Procurement Auctions for PES |
| description |
Successfully implemented payment for ecosystem services (PES) programs can provide both conservation of
nature and financial support to rural communities. In this paper, we explore how PES programs can be designed
so as to maximize the amount of additional ecosystem services provided for a given budget. We also provide a
brief summary of the use of auction mechanisms in real world PES programs. To explore the potential additionality
of different PES program designs we use a conceptual agent based simulation model where payments
are either fixed, or set through a uniform or discriminatory auction. The program can also be designed to target
payments to land-owners based on their provision of ecosystem services. Theoretically, auctions should be the
most effective design, especially if payments are differentiated and targeted by ecosystem service provision.
However, what we find is that the context in which the PES program is implemented—baseline compliance with
program standards among the participants, correlation between opportunity costs and ecosystem services in the
landscape, heterogeneity in costs and budget size—has a determining impact on the relative effectiveness of the
different payment designs, with fixed payments schemes being much more effective than auctions in certain
settings. Our findings suggest that context should be taken into serious consideration when a PES program design
is chosen. |
| format |
Artículo |
| author |
Lundberg, Liv U. Martin, Persson Alpízar, Francisco Lindgren, Kristian |
| author_facet |
Lundberg, Liv U. Martin, Persson Alpízar, Francisco Lindgren, Kristian |
| author_sort |
Lundberg, Liv |
| title |
Context Matters: Exploring the Cost-effectiveness of Fixed Payments and Procurement Auctions for PES |
| title_short |
Context Matters: Exploring the Cost-effectiveness of Fixed Payments and Procurement Auctions for PES |
| title_full |
Context Matters: Exploring the Cost-effectiveness of Fixed Payments and Procurement Auctions for PES |
| title_fullStr |
Context Matters: Exploring the Cost-effectiveness of Fixed Payments and Procurement Auctions for PES |
| title_full_unstemmed |
Context Matters: Exploring the Cost-effectiveness of Fixed Payments and Procurement Auctions for PES |
| title_sort |
context matters: exploring the cost-effectiveness of fixed payments and procurement auctions for pes |
| publisher |
Elsevier, Ámsterdam (Países Bajos) |
| publishDate |
2020 |
| url |
https://repositorio.catie.ac.cr/handle/11554/9507 |
| work_keys_str_mv |
AT lundbergliv contextmattersexploringthecosteffectivenessoffixedpaymentsandprocurementauctionsforpes AT umartinpersson contextmattersexploringthecosteffectivenessoffixedpaymentsandprocurementauctionsforpes AT alpizarfrancisco contextmattersexploringthecosteffectivenessoffixedpaymentsandprocurementauctionsforpes AT lindgrenkristian contextmattersexploringthecosteffectivenessoffixedpaymentsandprocurementauctionsforpes |
| _version_ |
1808116377479806976 |