Supplementing REDD+ with Biodiversity Payments: The Paradox of Paying for Multiple Ecosystem Services - Working Paper 347

Jonah Busch ()

No 347, Working Papers from Center for Global Development

Abstract: An international mechanism to reduce emissions from deforestation using carbon payments (REDD+) can be leveraged to make payments for forests’ biodiversity as well. Paradoxically, under conditions consistent with emerging REDD+ programs, money spent on a mixture of carbon payments and biodiversity payments has the potential to incentivize the provision of greater climate benefits than an equal amount of money spent only on carbon payments. This paradoxical result arises when diversifying payments across multiple services allows a funding agency to spend less on additional rents to existing suppliers of avoided deforestation and more on incentivizing the participation of new suppliers.

Keywords: Biodiversity conservation; climate change; deforestation; payments for ecosystem services (PES) (search for similar items in EconPapers)
JEL-codes: Q23 Q24 Q54 Q57 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2013-11
New Economics Papers: this item is included in nep-agr and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:cgd:wpaper:347

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