Future directions and recommendations

All of the foregoing should make clear that forest-based PES schemes are not a universal solution and do not respond to all needs. It is a complementary tool to legislation, regulation and democratic accountability. Identifying the tipping point where payment for a forestry environmental service would be used in preference to environmental legislation is not an easy task: cost-benefit analysis and political temperature-taking will be essential, especially given the strong attachment many regions have to their forests. To operate, forest-based PES schemes nevertheless need appropriate legislative and institutional frameworks as well as cost effective implementation. Bundling different services together may help to diminish transaction costs.

Related Subject(s): Environment and Climate Change