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Supplementing REDD+ with Biodiversity Payments: The Paradox of Paying for Multiple Ecosystem Services - Working Paper 347

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  • Jonah Busch

Abstract

An international mechanism to reduce emissions from deforestation using carbon payments (REDD+) can be leveraged to make payments for forests’ biodiversity as well. Paradoxically, under conditions consistent with emerging REDD+ programs, money spent on a mixture of carbon payments and biodiversity payments has the potential to incentivize the provision of greater climate benefits than an equal amount of money spent only on carbon payments. This paradoxical result arises when diversifying payments across multiple services allows a funding agency to spend less on additional rents to existing suppliers of avoided deforestation and more on incentivizing the participation of new suppliers.

Suggested Citation

  • Jonah Busch, 2013. "Supplementing REDD+ with Biodiversity Payments: The Paradox of Paying for Multiple Ecosystem Services - Working Paper 347," Working Papers 347, Center for Global Development.
    • Handle: RePEc:cgd:wpaper:347
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    References listed on IDEAS

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    1. Lykke Andersen & Jonah Busch & Elizabeth Curran & Juan Carlos Ledezma & Joaquín Mayorga & Mélissa Bellier, 2012. "Environmental and socio-economic consequences of forest carbon payments in Bolivia: Results of the OSIRIS-Bolivia model," Development Research Working Paper Series 02/2012, Institute for Advanced Development Studies.
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    4. Cattaneo, Andrea & Hellerstein, Daniel & Nickerson, Cynthia J. & Myers, Christina, 2006. "Balancing the Multiple Objectives of Conservation Programs," Economic Research Report 7257, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Cacho, Oscar J. & Milne, Sarah & Gonzalez, Ricardo & Tacconi, Luca, 2014. "Benefits and costs of deforestation by smallholders: Implications for forest conservation and climate policy," Ecological Economics, Elsevier, vol. 107(C), pages 321-332.
    2. Gary D. Libecap, 2014. "Addressing Global Environmental Externalities: Transaction Costs Considerations," Journal of Economic Literature, American Economic Association, vol. 52(2), pages 424-479, June.
    3. Mbatu, Richard S, 2016. "REDD+ research: Reviewing the literature, limitations and ways forward," Forest Policy and Economics, Elsevier, vol. 73(C), pages 140-152.
    4. 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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    More about this item

    Keywords

    Biodiversity conservation; climate change; deforestation; payments for ecosystem services (PES);
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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