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Payments for ecosystem services: durable habits, dubious nudges, and doubtful efficacy

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  • HIEDANPÄÄ, JUHA
  • BROMLEY, DANIEL W.

Abstract

Payments for ecosystem services (PES) have become a popular approach to bring about improved environmental behaviors. When such programs are launched in developing countries, an additional benefit is that they are said to improve incomes for the poor. In this paper, we argue that PES schemes are not ‘market-based’. Indeed, they are not even ‘market-like’. The incentive properties said to be present in such programs are of doubtful efficacy. We suggest that PES schemes are instances of a new class of transaction – the inducing transaction – whose purpose is to make certain resource users the instruments of the desires of others. We relate the success of PES schemes to Veblenian ‘habituation’ and Peircean ‘habit breaking and habit taking’ to suggest that PES schemes face a daunting challenge if they are to bring about durable behavioral changes.

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  • Hiedanpää, Juha & Bromley, Daniel W., 2014. "Payments for ecosystem services: durable habits, dubious nudges, and doubtful efficacy," Journal of Institutional Economics, Cambridge University Press, vol. 10(2), pages 175-195, June.
    • Handle: RePEc:cup:jinsec:v:10:y:2014:i:02:p:175-195_00
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    Cited by:

    1. Kar, Saibal & Majumdar, Devleena, 2021. "Transboundary pollution, land use and abatement policy," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 169-175.
    2. Laure Kuhfuss & Raphaële Préget & Sophie Thoyer & Nick Hanley & Philippe Le Coent & Mathieu Désolé, 2016. "Nudges, Social Norms, and Permanence in Agri-environmental Schemes," Land Economics, University of Wisconsin Press, vol. 92(4), pages 641-655.
    3. Vatn, Arild & Kajembe, George & Mosi, Elvis & Nantongo, Maria & Silayo, Dos Santos, 2017. "What does it take to institute REDD+? An analysis of the Kilosa REDD+ pilot, Tanzania," Forest Policy and Economics, Elsevier, vol. 83(C), pages 1-9.
    4. Akimowicz, Mikaël & Del Corso, Jean-Pierre & Gallai, Nicola & Képhaliacos, Charilaos, 2022. "The leader, the keeper, and the follower? A legitimacy perspective on the governance of varietal innovation systems for climate changes adaptation. The case of sunflower hybrids in France," Agricultural Systems, Elsevier, vol. 203(C).
    5. Van Hecken, Gert & Merlet, Pierre & Lindtner, Mara & Bastiaensen, Johan, 2019. "Can Financial Incentives Change Farmers' Motivations? An Agrarian System Approach to Development Pathways at the Nicaraguan Agricultural Frontier," Ecological Economics, Elsevier, vol. 156(C), pages 519-529.
    6. Davide Forcella & Rafael Moser & Lauro Emilio Gonzales Farias, 2016. "Rural Microfinance and Climate Change: Geographical Credits Allocation and Vulnerability. An Analysis of Agroamigo in Brazil’s Northeastern States," Working Papers CEB 16-011, ULB -- Universite Libre de Bruxelles.
    7. Jane Mills & Peter Gaskell & Julie Ingram & Janet Dwyer & Matt Reed & Christopher Short, 2017. "Engaging farmers in environmental management through a better understanding of behaviour," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 34(2), pages 283-299, June.
    8. Peltola, Taru & Arpin, Isabelle, 2017. "How We Come to Value Nature? - A Pragmatist Perspective," Ecological Economics, Elsevier, vol. 142(C), pages 12-20.

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