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FOREIGN-ASSISTED AND SPECIAL PROJECTS SERVICE
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Lessons in the Development of Markets for Ecosystem Services in a Watershed Context: a Survey of Different Country Experiences

This paper draws lessons from the experience of some countries in the development of marketlike arrangements in the delivery of water-related forest ecosystem services. It specifically identifies the various ecosystem services, watershed projects and activities that interested parties have either directly contracted with potential suppliers or have promoted through various financial mechanisms. It also highlights the role of national and local governments, private industries, individual landholders, associations of resource users, local and international non-governmental organizations, and local communities in the establishment of a new watershed institution. A review of this experience provides an understanding of the constraints and the necessary and sufficient conditions in the establishment and sustainability of such arrangements. It also draws the strategic actions to be taken in new areas. The following conditions are critically important in the development of ecosystem services: the willingness to pay of service users, the incentive and payment schemes for the delivery of such services, and the activities and transaction costs in mediating between potential suppliers and consumers of such services, and sustaining their arrangement.
Subject: 
Ecosystem Services
File: 
PDF icon Lessons in the Development of Markets for Ecosystem Services.pdf
Project Title: 
The Philippine Environmental Governance Project (EcoGov)
Publication Type: 
Book