Advantage and Disadvantages of PES

Will Turkish Membership Strengthen or Weaken the EU
August 20, 2022
Restriction on the Entry of New Firm
August 20, 2022

Advantage and Disadvantages of PES

Since Payment For Environmental Services creation in 1997 has grown in popularity becoming one of the most effective ways to improve conservation strategies (García-Amado, 2011; Cranford, 2011). Wunder has defined PES as “a voluntary arrangement where a well-defined environmental service (ES) is ”bought” by a (minimum of one) service buyer who compensates a (minimum of one) service provider-and does so if, and only if, the service provider continuously secures the provision of that service (conditionality)” (Wunder, 2005; Thuy, 2008). This is achieved by persuading land managers to adopt land use or management which support the ecosystem by having an economic incentive (Perrot-Maître, 2006). It can therefore be said that PES operates under a market based programme which provide financial incentives for landowners to preserve the ecosystems that provide the services (Wünscher, 2008; Groom, 2008; Perrot-Maître, 2006).

Get Help With Your Essay

If you need assistance with writing your essay, our professional essay writing service is here to help!

Essay Writing Service

PES is advantageous as it can protect a wide variety of ecosystems (DEFRA, 2010). For example Agri-environment schemes, Watershed protection, Carbon sequestration, wildlife conservation and Bio-prospecting (DEFRA, 2010). This demonstrates how universal PES schemes can be. PES Schemes are often implemented when there are no environmental provisions in place (Richards, 2007). Although PES schemes are mainly as government financed they has been an increase in private companies and individuals (private PES) (DEFRA, 2010). Many studies have indicated that PES can be both advantageous and be a disadvantage to resolving environmental issues.

PES is unique compared to other methods used to generate funds for environmental services due to the way the scheme is operated. Unlike other programmes used for environmental services PES does not run under a command-and-control approach (Pagiola, 2005).Instead PES is a market based instrument which offers incentives to encourage environmental protection (Gauvin, 2010; Pagiola, 2005). Due to these reasons PES can be said to be beneficial for not only to the environment but it is also advantageous to the economy in the areas which participate. This is done via direct cash payments to the land owner or through a project activity that is used to target the poor (Hegde, 2011). The poor can benefits from PES in two ways; directly and indirectly. Direct Benefits include financial payments and rewards , while indirect benefits is being allowed a greater political voice in what is done and more involvement in the negotiation process, but it also helps reduce social conflict and aids the development of new skills (Thuy, 2008).

Due to the social advantages which are offered by PES schemes it can be said there is a build in feedback mechanism. This is due to the fact that payments sent t