Environmental services payments in Central America: Putting theory into practice

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This presentation introduces the concept of water services and the need for payments for environmental services (PES). Current World Bank projects (implemented or under development) that are using PES approaches are listed. Diagrams illustrate the process of developing a PES project, which requires (1) understanding the science and economics involved, (2) developing a mechanism to capture the benefits, and (3) paying the service providers. Several case studies of project development from Costa Rica, the Dominican Republic, El Salvador, and Venezuela provide examples of the steps in this process.



Market supply, Water purification, Market demand, Payments for environmental services, Program planning, Environmental services, Markets, Watershed management, PES, Water services, Watershed


Presented at Session 16. Someone Has to Pay for It (Part II): Cost recovery and Subsidies for Environmental Services. World Bank Water Week 2004