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Towards market- or command-based governance? The evolution of payments for environmental service schemes in Andean and Mesoamerican countries

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  • Raes, Leander
  • Loft, Lasse
  • Le Coq, Jean François
  • Van Huylenbroeck, Guido
  • Van Damme, Patrick

Abstract

Payments for environmental services (PES) are a hybrid mode of governance, situated between markets and hierarchies. However, market structure has been used as a theoretical model to inform PES design. Based on 16 cases from Andean and Mesoamerican countries, we analyze whether PES schemes have, since their implementation, gradually incorporated more market characteristics or whether and to what extent these schemes have changed towards more reliance on command-based mechanisms. The schemes analyzed cover a range of governance mechanisms, from small markets to almost complete hierarchical organization. Our results suggest that over time an increasing number of the schemes have incorporated characteristics of a hierarchy to organize ecosystem service users. Mostly through the use of taxes/tariffs and by governments acting directly on users’ behalf. Contractual agreements, with payment levels either bilaterally negotiated or set by intermediaries, and providers being mainly individual and communal landholders, remain at the core of most schemes studied. Intermediaries are important actors in almost all schemes analyzed. They organize and/or represent users, and are usually national or local governments. The evolution of the schemes analyzed suggests that there is no convergence towards a market for ecosystem services, but an increasing complexity in the schemes' design.

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  • Raes, Leander & Loft, Lasse & Le Coq, Jean François & Van Huylenbroeck, Guido & Van Damme, Patrick, 2016. "Towards market- or command-based governance? The evolution of payments for environmental service schemes in Andean and Mesoamerican countries," Ecosystem Services, Elsevier, vol. 18(C), pages 20-32.
    • Handle: RePEc:eee:ecoser:v:18:y:2016:i:c:p:20-32
    DOI: 10.1016/j.ecoser.2016.01.005
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    2. Hao Wang & Sander Meijerink & Erwin van der Krabben, 2020. "Institutional Design and Performance of Markets for Watershed Ecosystem Services: A Systematic Literature Review," Sustainability, MDPI, vol. 12(16), pages 1-26, August.
    3. Sangha, Kamaljit K & Ahammad, Ronju & Russell-Smith, Jeremy & Costanza, Robert, 2024. "Payments for Ecosystem Services opportunities for emerging Nature-based Solutions: Integrating Indigenous perspectives from Australia," Ecosystem Services, Elsevier, vol. 66(C).
    4. Brownson, Katherine & Guinessey, Elizabeth & Carranza, Marcia & Esquivel, Manrique & Hesselbach, Hilda & Madrid Ramirez, Lucia & Villa, Luis, 2019. "Community-Based Payments for Ecosystem Services (CB-PES): Implications of community involvement for program outcomes," Ecosystem Services, Elsevier, vol. 39(C).
    5. Chu, Long & Quentin Grafton, R. & Keenan, Rodney, 2019. "Increasing Conservation Efficiency While Maintaining Distributive Goals With the Payment for Environmental Services," Ecological Economics, Elsevier, vol. 156(C), pages 202-210.
    6. Yongjie Xue & Jinling Yan & Dahai Li & Haijing Zheng, 2023. "Integrated Ocean Management (IOM) for Marine Sustainable Development Goal (SDG)14: A Case Study of China’s Bohai Sea," Sustainability, MDPI, vol. 15(7), pages 1-24, March.
    7. Marie Hrabanski & Jean-François Le Coq, 2018. "Tackling fragmentation of climate and biodiversity regimes complexes: the role ecosystem services and payment for environmental services : the role ecosystem services and payment for environmental ser," Post-Print hal-02958680, HAL.

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