Market-ish instruments and other strange beasts: A personal wrap-up view

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This presentation provides a summary discussion of "market-ish" instruments for environmental service provision. Choice of an instrument should be based on the objectives and context of a program. Although the definition of Payments for Environmental Services (PES) includes the roles of both service users and service providers, attention is primarily given the service providers and not the users. A shift to service user-focused PES mechanisms ('supply-side PES') could make PES outcomes more cost-effective by basing payments on user WTP (willingness to pay). The presentation concludes with discussing when PES is potentially useful and issues involved in paying providers.



Economic analyses, Payments for environmental services, Program planning, PES, Market-based instruments, Supply-side PES, Willingness to pay, Cost-effectiveness, Social inefficiencies, Financial inefficiencies, Service users


Presented at the ZEF-CIFOR workshop: Payments for Environmental Services (PES): Methods and Design in Developing and Developed Countries, Titisee, Germany, 15-18 June 2005