Protecting forests and biodiversity: Are investments in eco-friendly production activities the best way to protect endangered ecosystems and enhance rural livelihoods?

In the next section (II), we describe the economics of direct and indirect approaches to protecting ecosystems and biodiversity. In sections III-V, we address common criticisms of direct payment approaches and attempt to answer the question, 'If direct approaches are more desirable, why have indirect approaches been more commonly employed in recent years?' In section VI, we offer a brief review of how direct payments are working in practice around the world.