The Effectiveness of Payments for Environmental Services
Journal article, 2017

We adopt a theory-based approach to synthesize research on the effectiveness of payments for environmental services in achieving environmental objectives and socio-economic co-benefits in varying contexts. Our theory of change builds on established conceptual models of impact pathways and highlights the role of (1) contextual dimensions (e.g., political, institutional, and socio-economic conditions, spatial heterogeneity in environmental service values and provision costs, and interactions with pre-existing policies), and (2) scheme design (e.g., payment type and level, contract length, targeting, and differentiation of payments) in determining environmental and socio-economic outcomes. To shed light on the overall effectiveness of payment schemes, and its determinants, we review counterfactual-based empirical evaluations, comparative analyses of case-studies, and meta-analyses. Our review suggests that program effectiveness often lags behind the expectations of early theorists. However, we also find that theory has advanced sufficiently to identify common reasons for why payment schemes fail or succeed. Moreover, payment schemes are often rolled out along with other policy instruments in so-called policy mixes. Advances in theory and evaluation research are needed to improve our understanding of how such policy mixes interact with the targeted social-ecological systems. © 2017

policy design

environmental effectiveness

trade-offs

payments for ecosystem services

impact evaluation

Author

Jan Börner

University of Bonn

Kathy Baylis

University of Illinois

E. Corbera

Universitat Autonoma de Barcelona (UAB)

Driss Ezzine-de-Blas

CIRAD Centre de Recherche de Montpellier

Jordi Honey-Rosés

University of British Columbia (UBC)

Martin Persson

Chalmers, Energy and Environment, Physical Resource Theory

Sven Wunder

Center for International Forestry Research (CIFOR)

World Development

0305-750X (ISSN) 18735991 (eISSN)

Vol. 96 359-374

Areas of Advance

Information and Communication Technology

Transport

Roots

Basic sciences

Subject Categories

Economics and Business

Other Social Sciences

DOI

10.1016/j.worlddev.2017.03.020

More information

Latest update

7/4/2018 6