Payments for bundled services

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.