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Principles for fairness and efficiency in enhancing environmental services in Asia: payments, compensation, or co-investment?

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Based on our action research in Asia in the Rewarding Upland Poor for Environmental Services they provide (RUPES) program since 2002, we 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.

DOI:
https://doi.org/10.5751/ES-03664-150417
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    Publication year

    2010

    Authors

    Leimona, B.; van Noordwijk, M.

    Language

    English

    Keywords

    compensation, ecosystems, environmental management, households, poverty

    Geographic

    Philippines, Nepal

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