Current Science

Open Access Open Access  Restricted Access Subscription Access

Payment for ecosystem services and its applications in India


Affiliations
1 Department of Agricultural Economics, College of Agriculture, Odisha University of Agriculture and Technology, Bhubaneswar 751 003, India., India
2 School of Humanities and Social Science, National Institute of Science Education and Research, Bhubaneswar 752 050, India; Homi Bhabha National Institute, Anushakti Nagar, Mumbai 400 094, India., India
3 ICAR-National Institute of Agricultural Economics and Policy Research, New Delhi 110 012, India., India
 

Ecosystem services are the processes of nature that directly or indirectly benefit human beings. These services need to be conserved through incentive-based market approaches for a sustainable future. Payment for ecosystem services (PES) is one approach that aims to manage natural resources and ecosystem stewardship, wherein the users recompense the conservators of the ecosystem services. While PES has numerous benefits in enhancing the awareness of linkages between human well-being (e.g. poverty alleviation) and ecosystem services, it is constrained by major challenges, especially in developing countries like India. This article reviews the significant issues and challenges of environmental marketing in India and suggests measures to promote PES.

Keywords

Environment, Livelihood Security, Market, Payment for Ecosystem Services, Sustainable Future.
User
Notifications
Font Size

  • Dasgupta, P., The economics of biodiversity: the Dasgupta review. HM Treasury, Government of the United Kingdom, 2021.

  • Bateman, I., Mace, G. M., Fezzi, C., Atkinson, G. and Turner, K., Economic analysis of ecosystem service assessments. Environ. Resour. Econ., 2010, 48, 177–218.

  • Barbier, E. B., Valuing ecosystem services as productive inputs. Econ. Policy, 2007, 22, 177–229.

  • Fisher, B. and Turner, R. K., Ecosystem services: classification for valuation. Biol. Conserv., 2008, 141, 1167–1169.

  • Maler, K.-G., Aniyar, S. and Jansson, A., Accounting for ecosystem services. Environ. Resour. Econ., 2008, 42, 39–51.

  • Ajayi, O. C., Jack, B. K. and Leimona, B., Auction design for the private provision of public goods in developing countries: lessons from payments for environmental services in Malawi and Indonesia. World Dev., 2011, 40, 1213–1223.

  • Daily, G. C. (ed.), Nature’s Services: Societal Dependence on Natural Ecosystems, Island Press, Washington, DC, USA, 1997.

  • Costanza, R. et al., The value of the world’s ecosystem services and natural capital. Nature, 1997, 387, 253–260; https://doi.org/ 10.1038/387253a0.

  • Wilson, C. M. and Matthews, W. H. (eds), Man’s Impact on the Global Environment: Report of the Study of Critical Environmental Problems (SCEP), MIT Press, Cambridge, MA, USA, 1970.

  • Westman, W. E., How much are nature’s services worth? Science, 1977, 197(4307), 960–964.

  • Ehrlich, P. and Ehrlich, A., Extinction, Ballantine Books, New York, USA, 1981.

  • Ehrlich, P. R. and Mooney, H. A., Extinction, substitution, and ecosystem services. BioScience, 1983, 33(4), 248–254; https://doi. org/10.2307/1309037

  • Fisher, B., Turner, R. K. and Morling, P., Defining and classifying ecosystem services for decision making. Ecol. Econ., 2008, 68(3), 643–653.

  • Gómez-Baggethun, E., de Groot, R. S., Lomas, P. L. and Montes, C., The history of ecosystem services in economic theory and practice: from early notions to markets and payment schemes. Ecol. Econ., 2010, 69(6), 1209–1218.

  • Norgaard, R. B., Ecosystem services: from eye-opening metaphor to complexity blinder. Ecol. Econ., 2010, 69(6), 1219–1227.

  • Sukhdev, P., The economics of ecosystems and biodiversity: an interim report, European Community, Brussels, Belgium, 2008.

  • IPBES secretariat; https://ipbes.net (accessed on 23 August 2022).

  • Mooney, H. A. and Ehrlich, P. R., Nature’s Services, Island Press, Washington, DC, USA, 1997, pp. 11–19.

  • MA, Millennium Ecosystem Assessment. Ecosystems and human well-being: synthesis. World Resources Institute, Washington, DC, USA, 2005.

  • Goldman, R., Thompson, B. and Daily, G., Institutional incentives for managing the landscape: inducing cooperation for the production of ecosystem services. Ecol. Econ., 2007, 64, 333–343.

  • Shapiro, J. and Báldi, A., Accurate accounting: how to balance ecosystem services and disservices. Ecosys. Serv., 2014, 7, 201– 202.

  • Sandbrook, C. G. and Burgess, N. D., Biodiversity and ecosystem services: not all positive. Ecosyst. Serv., 2015, 12, 29.

  • Thompson, S. C. G. and Barton, M. A., Ecocentric and anthropocentric attitudes toward the environment. J. Environ. Psychol., 1994, 14(2), 149–157.

  • McCauley, D. J., Selling out on nature. Nature, 2006, 443, 27–28.

  • Dhruba Bijaya, G. C. et al., Payment for ecosystem services in Nepal: a literature review on overview and recommendations for further research. Acta Sci. Agric., 2018, 2(11), 37–42.

  • Engel, S., Pagiola, S. and Wunder, S., Designing payments for environmental services in theory and practice: an overview of the issues. Ecol. Econ., 2008, 65, 663–674.

  • Daily, G. et al., Ecosystem services in decision making: time to deliver. Front. Ecol. Environ., 2009, 7(1), 21–28.

  • Gaworecki, M., Cash for conservation: do payments for ecosystem services work? 2017; https://news.mongabay.com/2017/10/cash-for-conservation-do-payments-for-ecosystem-services-work/ (accessed on 14 July 2022).

  • Turner, R. and Daily, G., The ecosystem services framework and natural capital conservation. Environ. Resour. Econ., 2008, 39(1), 25–35.

  • Carroll, N. and Jenkins, M., The matrix: mapping ecosystem service markets. In Ecosystem Marketplace. Integrated Solutions: Water Biodiversity and the clean development mechanism. EM Market Insights: Beyond Carbon. The Katoomba Group, Forest Trends and Ecosystem Marketplace, 2010, pp. 1–40.

  • Landell-Mills, N. and Porras, I., Silver bullet or fool’s gold? A global review of markets for forest environmental services and their impact on the poor, IIED, London, UK, 2002.

  • Madsen, B., Carroll, N. and Moore Brands, K., State of biodiversity markets. Ecosystem Marketplace, USA, 2010; http://www.ecosystemmarketplace.com (accessed on 20 July 2022).

  • Hamilton, K., Sjardin, M., Peters-Stanley, M. and Marcello, T., Building bridges: state of the voluntary carbon markets 2010. Ecosystem Marketplace and Bloomberg New Energy Finance, Washington, DC, USA, 2010; http://www.foresttrends.org/publication_ details.php?publicationID=2433 (accessed on 20 July 2022).

  • Stanton, T., Echavarria, M., Hamilton, K. and Ott, C., State of watershed payments: an emerging marketplace. Ecosystem Marketplace, USA, 2010; http://www.foresttrends.org/documents/files/ doc_2438.pdf (accessed on 14 June 2022).

  • Zhang, L., Tu, Q. and Mol, A., Payment for environmental services: the sloping land conversion program in Ningxia Autonomous Region of China. China World Econ., 2008, 16(2), 66–81.

  • Pagiola, S., Ramierz, E., Gobbi, J., de Haan, C., Ibrahim, M., Murgueitio, E. and Pablo Ruiz, J., Paying for the environmental services of silvopastoral practices in Nicaragua. Ecol. Econ., 2007, 64, 374–385.

  • Rosa, H., Kandel, S. and Dimas, L. Compensation for environmental services and rural communities: lessons from the Americas. Int. For. Rev., 2004, 6(2), 187–194.

  • Pagiola, S. et al., Paying for biodiversity conservation services in agricultural landscapes. Environmental Economics Series, Environment Department Paper No. 96. The World Bank Environment, 2004.

  • Ferraro, P. and Kiss, A., Direct payments for biodiversity conservation. Science, 2002, 298, 1718–1719.

  • Ferraro, P. and Simpson, R., The cost-effectiveness of conservation payments. Land Econ., 2002, 78, 339–353.

  • Pattanayak, W. and Ferraro, P. J., Show me the money: do payments supply environmental services in developing countries? Rev. Environ. Econ. Policy, 2010, 4(2), 254–274.

  • Kroeger, T. and Casey, F., An assessment of market-based approaches to providing ecosystem services on agricultural lands. Ecol. Econ., 2007, 64, 321–332.

  • Naidoo, R., Malcolm, T. and Tomasek, A., Economic benefits of standing forests in highland areas of Borneo: quantification and policy impacts. Conserv. Lett., 2009, 2(1), 36–45.

  • Kosoy, N., Martinez-Tuna, M., Muradian, R. and Martinez-Alier, J., Payments for environmental services in watersheds: insights from a comparative study of three cases in Central America. Ecol. Econ., 2007, 61, 446–455.

  • Ferraro, P. J. and Pattanayak, S. K., Money for nothing? A call for empirical evaluation of biodiversity conservation investments. PLoS Biol., 2006, 4(4), e105; https://doi.org/10.1371/journal. pbio.0040105.

  • Robertson, N. and Wunder, S., Fresh tracks in the forest. Center for International Forestry Research, Bogor, Indonesia, 2005.

  • Swinton, S., Lupi, F., Robertson, G. and Hamilton, S., Ecosystem services and agriculture: cultivating agricultural ecosystems for diverse benefits. Ecol. Econ., 2007, 64, 245–252.

  • Wunder, S., Between purity and reality: taking stock of PES schemes in the Andes. In Ecosystem Marketplace. Integrated Solutions: Water biodiversity and the clean development mechanism. EM Market Insights: Beyond Carbon. The Katoomba Group, Forest Trends and Ecosystem Marketplace, 2009, pp. 1–40.

  • Pagiola, S., Arcenas, A. and Platais, G., Can payments for environmental services help reduce poverty? An exploration of the issues and the evidence to date from Latin America. World Dev., 2005, 33(2), 237–253.

  • Wunder, S., Engel, S. and Pagiola, A., Taking stock: a comparative analysis of payments for environmental services programs in developed and developing countries. Ecol. Econ., 2008, 65, 834–852.

  • Zilberman, D., Lipper, L. and McCarthy, N., When could payments for environmental services benefit the poor? Environ. Dev. Econ., 2008, 13(3), 255–278; doi:10.1017/S1355770X08004294.

  • Jack, B., Kousky, C. and Sims, K., Designing payments for ecosystem services: lessons from previous experience with incentive-based mechanisms. Proc. Natl. Acad. Sci. USA, 2008, 105(28), 9465–9470.

  • Carroll, N. and Jenkins, M. (eds), The Matrix: Mapping Ecosystem Service Markets, Forest Trends and Ecosystem Marketplace, Washington, DC, USA, 2008.

  • Panayotou, T., Green Markets: The Economics of Sustainable Development, ICS Press Institute for Contemporary Studies, 1993.

  • Lerche, J., Agrarian crisis and agrarian questions in India. J. Agrar. Change, 2011, 11(1), 104–118.

  • Gandhi, G., The Indian farmer is protesting about much more than loan waivers. The Wire, 2017; https://thewirein/146200/farmersprotest-drought-loan-agriculture-maharashtra-mp/ (accessed on 22 June 2022).

  • Kumar, L., Manjula, M., Ramachandra, B., Venkatachalam, L., Suresh Kumar, D., Indira Devi, P. and Mukhopadhyay, P., Doubling India’s farm incomes paying farmers for ecosystem services, not just crops. Econ. Polit. Wkly, 2019, 54(23), 43–49.

  • Van der Ploeg, S., De Groot, R. S. and Wang, Y., The TEEB Valuation Database: overview of structure, data and results. Foundation for Sustainable Development, Wageningen, The Netherlands, 2010.

  • Indira Devi, P. et al., Payment for ecosystem services: guaranteed farm income and sustainable agriculture. Econ. Polit. Wkly, 2017, LII(17), 12–14.

  • Adhikari, B., Market based approaches to environmental management: a review of lessons from payment for ecosystem services in Asia. ADBI Working Paper Series, Asian Development Bank Institute, Tokyo, Japan, 2009, p. 134.


Abstract Views: 158

PDF Views: 72




  • Payment for ecosystem services and its applications in India

Abstract Views: 158  |  PDF Views: 72

Authors

Suvangi Rath
Department of Agricultural Economics, College of Agriculture, Odisha University of Agriculture and Technology, Bhubaneswar 751 003, India., India
Amarendra Das
School of Humanities and Social Science, National Institute of Science Education and Research, Bhubaneswar 752 050, India; Homi Bhabha National Institute, Anushakti Nagar, Mumbai 400 094, India., India
Shivendra Kumar Srivastava
ICAR-National Institute of Agricultural Economics and Policy Research, New Delhi 110 012, India., India
T. M. Kiran Kumara
ICAR-National Institute of Agricultural Economics and Policy Research, New Delhi 110 012, India., India
Khitish Kumar Sarangi
Department of Agricultural Economics, College of Agriculture, Odisha University of Agriculture and Technology, Bhubaneswar 751 003, India., India

Abstract


Ecosystem services are the processes of nature that directly or indirectly benefit human beings. These services need to be conserved through incentive-based market approaches for a sustainable future. Payment for ecosystem services (PES) is one approach that aims to manage natural resources and ecosystem stewardship, wherein the users recompense the conservators of the ecosystem services. While PES has numerous benefits in enhancing the awareness of linkages between human well-being (e.g. poverty alleviation) and ecosystem services, it is constrained by major challenges, especially in developing countries like India. This article reviews the significant issues and challenges of environmental marketing in India and suggests measures to promote PES.

Keywords


Environment, Livelihood Security, Market, Payment for Ecosystem Services, Sustainable Future.

References





DOI: https://doi.org/10.18520/cs%2Fv124%2Fi7%2F799-806