Basic principles of PES

Abstract

Over the last decade, several schemes have evolved in which those who are seen as providers of useful environmental services receive payments from the service buyers (service beneficiaries or 'users'). Known as Payments for Environmental Services (PES), these approaches constitute a new frontier in conservation and sustainable development efforts. Valid questions that arise here are: What is so new about PES, and what makes it special? We answer these questions by discussing why it is generally difficult to encourage natural resource users to provide environmental services and the relative merits of PES compared with other approaches to promote conservation.