A targeted approach to payments for ecosystem services

Payment for ecosystem services (PES) is championed as a promising approach for advancing environmental conservation. As part of an ongoing project of refashioning PES intellectually and practically, we introduce a targeted approach to application of the logic of PES. We identify specific circumstances in which PES has potential to be ecologically effective and socially progressive. Specifically, we identify probability for success to increase where there are sharp disparities in the economic and ecological status of ecosystem service providers and beneficiaries. In identifying wealth and ecological disparities as important elements of PES design, we do not naturalize economic stratification in any way. Our aim is to highlight significant limits on the scope of PES and to advance a pragmatic, integrated approach to incentive-based environmental management. These insights can help policy makers and environmental management professionals to advance a more modest, targeted and practical approach to PES. Keywords: Payment for ecosystem services, Willingness to pay, Willingness to accept, Market-based policy instrument, Inequality, Wealth disparit