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Nudging service providers and assessing service trade-offs to reduce the social inefficiencies of payments for ecosystem services schemes

Author

Listed:
  • Matthies, Brent D.
  • Kalliokoski, Tuomo
  • Eyvindson, Kyle
  • Honkela, Nina
  • Hukkinen, Janne I.
  • Kuusinen, Nea J.
  • Räisänen, Petri
  • Valsta, Lauri T.

Abstract

Socially inefficient payment for ecosystem services (PES) schemes result when adverse shifts in the provisioning of other ecosystem services (ES) or overpayment to service providers occur. To address these inefficiencies, a holistic evaluation of trade-offs between services should be conducted in parallel with determining land owners’ service provisioning preferences. Recent evidence also suggests that nudging stakeholders’ preferences could be a useful policy design tool to address global change challenges. Forest owners’ landscape management preferences were nudged to determine the impact on the social efficiency of PES schemes for biodiversity conservation and climate change mitigation in Finland. ES indicators for biodiversity conservation, carbon storage, and the albedo effect were included with traditional provisioning services (i.e. timber) and bioenergy to assess the consequent intra-service trade-offs. Synergies in provisioning of regulating services were identified, but were found to be more efficient when the management objective is for biodiversity conservation rather than climate change regulation. Nudging led to marginal gains in service provisioning above the baseline management and above neutral owner preferences, and increased aggregate service provisioning. This demonstrates the importance of considering intra-service trade-offs and that nudging could be an important tool for designing efficient PES schemes.

Suggested Citation

  • Matthies, Brent D. & Kalliokoski, Tuomo & Eyvindson, Kyle & Honkela, Nina & Hukkinen, Janne I. & Kuusinen, Nea J. & Räisänen, Petri & Valsta, Lauri T., 2016. "Nudging service providers and assessing service trade-offs to reduce the social inefficiencies of payments for ecosystem services schemes," Environmental Science & Policy, Elsevier, vol. 55(P1), pages 228-237.
  • Handle: RePEc:eee:enscpo:v:55:y:2016:i:p1:p:228-237
    DOI: 10.1016/j.envsci.2015.10.009
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    Citations

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    Cited by:

    1. Kangas, Johanna & Ollikainen, Markku, 2022. "A PES scheme promoting forest biodiversity and carbon sequestration," Forest Policy and Economics, Elsevier, vol. 136(C).
    2. Valatin, Gregory & Moseley, Darren & Dandy, Norman, 2016. "Insights from behavioural economics for forest economics and environmental policy: Potential nudges to encourage woodland creation for climate change mitigation and adaptation?," Forest Policy and Economics, Elsevier, vol. 72(C), pages 27-36.
    3. Matthies, Brent D. & Vainio, Annukka & D'Amato, Dalia, 2018. "Not so biocentric – Environmental benefits and harm associated with the acceptance of forest management objectives by future environmental professionals," Ecosystem Services, Elsevier, vol. 29(PA), pages 128-136.
    4. 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.
    5. Gutierrez-Castillo, Ana & Penn, Jerrod & Tanger, Shaun & Blazier, Michael A., 2022. "Conservation easement landowners' willingness to accept for forest thinning and the impact of information," Forest Policy and Economics, Elsevier, vol. 135(C).
    6. Juutinen, Artti & Ahtikoski, Anssi & Lehtonen, Mika & Mäkipää, Raisa & Ollikainen, Markku, 2018. "The impact of a short-term carbon payment scheme on forest management," Forest Policy and Economics, Elsevier, vol. 90(C), pages 115-127.
    7. Renats Trubins, 2023. "Trade-Offs in Ecosystem Services: Clarifying Concepts and Measuring Severity within the Production Possibility Frontier Framework," Sustainability, MDPI, vol. 15(24), pages 1-10, December.
    8. Isoaho, K. & Burgas, D. & Janasik, N. & Mönkkönen, M. & Peura, M. & Hukkinen, J.I., 2019. "Changing forest stakeholders’ perception of ecosystem services with linguistic nudging," Ecosystem Services, Elsevier, vol. 40(C).
    9. Matthies, Brent D. & Valsta, Lauri T., 2016. "Optimal forest species mixture with carbon storage and albedo effect for climate change mitigation," Ecological Economics, Elsevier, vol. 123(C), pages 95-105.

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