Description:
The concept of payments for environmental services (PES) lends itself to an extremely diverse array of experimentations. At a time when PES are likely to be scaled up massively in certain parts of the tropics, notably in the context of REDD+, it is important to refine the scope of implementation of the instrument to avoid several perverse effects specific to PES and sustain its benefits over time. We analyze recent developments in PES based on a review of literature and emerging practices as we observe them in the field. Using various elements from the theory of economics, public action and environmental management, we flag five key aspects of PES that are often overlooked in most influential studies on PES: (1) the nature of the environmental service providers, (2) the actual efficiency gains of involving industrial and commercial actors, (3) the type of contractual obligations incumbent to the providers and duration of payments, (4) the potential macroeconomic effects of an upscaling of PES, and (5) the risk that PES undermine the consolidation of fragile states. If these elements are not properly addressed in the design of PES, this paper explains that the instrument risks delivering only ephemeral environmental results, while inducing a dangerous shift towards the ‘polluter-profits’ principle. Conversely, we explain how systematically going beyond monetary payments and integrating elements of technical support to encourage alternative productive activities is key to sustain PES benefits over time.