Skip to main content

Paying for Ecosystem Services

  • Chapter
  • First Online:
Environmental Heresies

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 chapter, 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.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 89.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 119.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 119.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Bibliography

  • Arriagada, Rodrigo A., Paul J. Ferraro, Erin O. Sills, Subhrendu K. Pattanayak, and Silvia Cordero-Sancho. 2012. Do Payments for Environmental Services Affect Forest Cover? A Farm-Level Evaluation from Costa Rica. Land Economics 88(2): 382–399.

    Article  Google Scholar 

  • Bromley, Daniel W. 1991. Environment and Economy: Property Rights and Public Policy. Oxford: Blackwell.

    Google Scholar 

  • ———. 2006. Sufficient Reason: Volitional Pragmatism and the Meaning of Economic Institutions. Princeton: Princeton University Press.

    Google Scholar 

  • ———. 2008a. Formalising Property Relations in the Developing World: The Wrong Prescription for the Wrong Malady. Land Use Policy 26: 20–27.

    Article  Google Scholar 

  • ———. 2008b. Resource Degradation in the African Commons: Accounting for Institutional Decay. Environment and Development Economics 13: 539–563.

    Article  Google Scholar 

  • Chang, Ha-Joon. 2011. Institutions and Economic Development: Theory, Policy and History. Journal of Institutional Economics 7(4): 473–498.

    Article  Google Scholar 

  • Clark, Andy. 1997. Being There: Putting Mind, Body, and the World Together Again. Cambridge: MIT Press.

    Google Scholar 

  • Commons, John R. 1931. Institutional Economics. American Economic Review 21(4): 648–657.

    Google Scholar 

  • Deacon, Terrence W. 2012. Incomplete Nature. New York: Norton & Norton.

    Google Scholar 

  • Dedeurwaerdere, Tom. 2005. From Bioprospecting to Reflexive Governance. Ecological Economics 53(4): 473–491.

    Article  Google Scholar 

  • de Soto, Hernando. 2000. The Mystery of Capital. New York: Basic Books.

    Google Scholar 

  • Dewey, John. 1988. Human Nature and Conduct. In John Dewey: The Middle Works, 1899–1924: vol. 14, 1922. Ed. Jo Ann Boydston, 1–236. Carbondale: Southern Illinois University Press.

    Google Scholar 

  • Duhigg, Charles. 2012. The Power of Habit. New York: Random House.

    Google Scholar 

  • Ferraro, Paul J. 2001. Global Habitat Protection: Limitations of Development Interventions and a Role for Conservation Performance Payments. Conservation Biology 15: 990–1000.

    Article  Google Scholar 

  • Ferraro, Paul J 2008. Asymmetric Information and Contract Design for Payments for Environmental Services. Ecological Economics 65: 811–822.

    Article  Google Scholar 

  • ———. 2011. The Future of Payments for Environmental Services. Conservation Biology 25: 1134–1138.

    Article  Google Scholar 

  • Ferraro, Paul J., and A. Kiss. 2002. Direct Payments to Conserve Biodiversity. Science 298(5599): 1718–1720.

    Article  Google Scholar 

  • Folke, Carl. 2006. Resilience: The Emergence of a Perspective for Social-ecological Systems Analyses. Global Environmental Change 16(3): 253–267.

    Article  Google Scholar 

  • Hartshorn, G., P. Ferraro, B. Spergel, and E. Sills. 2005. Evaluation of the World Bank—GEF Ecomarkets Project in Costa Rica. Raleigh: Department of Forest Resources, North Carolina State University.

    Google Scholar 

  • Hiedanpää, Juha. 2002. European-wide Conservation vs. Local Well-being: The Reception of Natura 2000 Reserve Network in Karvia, SW–Finland. Landscape and Urban Planning 61(2–4): 113–123.

    Article  Google Scholar 

  • Hiedanpää, Juha and Daniel W. Bromley. 2014. Payments for Ecosystem Services: Durable Habits, Dubious Nudges, and Doubtful Efficacy, Journal of Institutional Economics, 10(2):175–95.

    Google Scholar 

  • Hodgson, Geoffrey M. 1998. The Approach of Institutional Economics. Journal of Economic Literature 1: 166–192.

    Google Scholar 

  • ———. 2004. The Evolution of Institutional Economics: Agency, Structure and Darwinism in American Institutionalism. London: Routledge.

    Book  Google Scholar 

  • Hodgson, Geoffrey M., and T. Knudson. 2012. Darwin's Conjecture: The Search for the General Principles of Social and Economic Evolution. Chicago: University of Chicago Press.

    Google Scholar 

  • Hutchins, Edwin. 1996. Cognition in the Wild. Cambridge: MIT Press.

    Google Scholar 

  • Joas, Hans. 1996. The Creativity of Action. Chicago: University of Chicago Press.

    Google Scholar 

  • Juutinen, Artti, Erkki Mäntymaa, Mikko Mönkkönen, and Rauli Svento. 2008. Voluntary Agreements in Protecting Privately Owned Forests in Finland—To Buy or to Lease. Forest Policy and Economics 10(4): 230–239.

    Article  Google Scholar 

  • Kerekes, C.B., and C.R. Williamson. 2008. Unveiling De Soto’s Mystery: Property Rights, Capital Formation and Development. Journal of Institutional Economics 4(3): 299–325.

    Article  Google Scholar 

  • Kronman, Anthony T. 1985. Contract Law and the State of Nature. Journal of Law, Economics, and Organization 1: 5–32.

    Google Scholar 

  • Larson, B.A., and D.W. Bromley. 1990. Property Rights, Externalities, and Resource Degradation: Locating the Tragedy. Journal of Development Economics 33(2): 235–262.

    Article  Google Scholar 

  • MacIntyre, Alasdair. 1984. After Virtue. Notre Dame: Notre Dame University Press.

    Google Scholar 

  • Martin, C. 1978. The War Between Indians and Animals. Natural History 87(6): 92–96.

    Google Scholar 

  • Milder, Jeffrey C., Sara J. Scherr, and Carina Bracer. 2010. Trends and Future Potential of Payment for Ecosystem Services to Alleviate Rural Poverty in Developing Countries. Ecology and Society 15(2):4. http://www.ecologyandsociety.org/vol15/iss2/art4/.

    Google Scholar 

  • Ormerod, Paul. 1998. Butterfly Economics: A New General Theory of Social and Economic Behavior. New York: Pantheon Books.

    Google Scholar 

  • Peirce, Charles Sanders. 1998. The Essential Peirce: Selected Philosophical Writings, Vol 2. (1892–1913). Bloomington: Indiana University Press. (The Peirce Edition Project).

    Google Scholar 

  • Primmer, Eeva, and Eeva Furman. 2012. Operationalising Ecosystem Service Approaches for Governance: Do Measuring, Mapping and Valuing Integrate Sector-Specific Knowledge Systems? Ecosystem Services 1: 85–92.

    Article  Google Scholar 

  • Quellette, J.A., and W. Wood. 1998. Habit and Intention in Everyday Life: The Multiple Processes by Which Past Behavior Predicts Future Behavior. Psychological Bulletin 124(1): 54–74.

    Article  Google Scholar 

  • Ramstad, Yngve. 1990. The Institutionalism of John R. Commons: Theoretical Foundations of a Volitional Economics. In Research in the History of Economic Thought and Methodology, ed. W. Samuels. Boston: JAI Press.

    Google Scholar 

  • ———. 1996. Is A Transaction a Transaction? Journal of Economic Issues 30(2): 413–425.

    Article  Google Scholar 

  • Sagoff, Mark. 2011. The Quantification and Valuation of Ecosystem Services. Ecological Economics 70: 497–502.

    Article  Google Scholar 

  • Shelley, B.G. 2011. What Should We Call Instruments Commonly Known as Payments for Environmental Services? A Review of the Literature and a Proposal. In Ecological Economics Reviews, eds. R. Costanza, K. Limburg, and I. Kubiszewski. Annals of the New York Academy of Sciences 1219:209–225.

    Google Scholar 

  • Simon, Herbert. 1987. Rationality in Psychology and Economics. In Rational Choice, eds. Robin Hogarth and Melvin W. Reder. Chicago: University of Chicago Press.

    Google Scholar 

  • Spinks, C.W. 1991. Peirce and Triadomania: A Walk in the Semiotic Wilderness. Berlin: Mouton de Gruyter.

    Book  Google Scholar 

  • Sunstein, Cass. 2013. Simpler: The Future of Government. New York: Simon & Schuster.

    Google Scholar 

  • Vatn, Arild. 2005. Institutions and the Environment. London: Edward Elgar.

    Google Scholar 

  • ———. 2010. An Institutional Analysis of Payments for Environmental Services. Ecological Economics 69(6): 1245–1252.

    Article  Google Scholar 

  • Vatn, Arild, and Daniel W. Bromley. 1994. Choices Without Prices Without Apologies. Journal of Environmental Economics and Management 26(2): 129–148.

    Article  Google Scholar 

  • Veblen, Thorstein. 1898 (1990). Why is Economics Not an Evolutionary Science? The Quarterly Journal of Economics 12(4):373–397, July. (Reprinted in: Thorstein Veblen, 1990. The Place of Science in Modern Civilization, New Brunswick, N.J.: Transaction Publishers, pp. 56–81).

    Google Scholar 

  • Williamson, Oliver E. 2002. The Theory of the Firm as Governance Structure: From Choice to Contract. Journal of Economic Perspectives 16(3): 171–195.

    Article  Google Scholar 

  • Williamson, Oliver E. 2005. The Economics of Governance. American Economic Review 95(2): 1–18.

    Article  Google Scholar 

  • Wunder, Sven. 2005. Payments for Environmental Services: Some Nuts and Bolts. CIFOR, Occasional Paper No. 42.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Copyright information

© 2016 The Author(s)

About this chapter

Cite this chapter

Hiedanpää, J., Bromley, D.W. (2016). Paying for Ecosystem Services. In: Environmental Heresies. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-60083-7_7

Download citation

  • DOI: https://doi.org/10.1057/978-1-137-60083-7_7

  • Published:

  • Publisher Name: Palgrave Macmillan, London

  • Print ISBN: 978-1-137-60082-0

  • Online ISBN: 978-1-137-60083-7

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics