Payments for bundled services

TR Number
Date
2007
Journal Title
Journal ISSN
Volume Title
Publisher
Blacksburg, VA: SANREM CRSP, OIRED, Virginia Tech
Abstract

Any ecosystem provides several kinds of environmental services at the same time. As we know, a tropical forest sequesters carbon, provides watershed services, is aesthetically beautiful, and conserves biodiversity. Selling only a few environmental services may not cover the opportunity cost of conserving the entire ecosystem. Instead, conservationists may need to organize payments for as many environmental services as possible. However, this will increase the transaction costs associated with selling each service individually. The solution may lie in bundling these services and selling them as a single product.

Description
Keywords
Environmental services, Payments for environmental services, Conservation strategy, Program planning, PES, Bundled services, Opportunity costs, Transaction costs, Complementary services, Environmental services index (esi), Ecosystem Farm/Enterprise Scale Watershed
Citation
USAID PES Brief 2.5