Improving the link between payments and the provision of ecosystem services in agri-environment schemes

Mark S. Reed, Andrew Moxey, Katrin Prager, Nick Hanley, James Skates, Aletta Bonn, Chris D. Evans, Klaus Glenk and Ken Thomson

Ecosystem Services, 2014, vol. 9, issue C, 44-53

Abstract: This paper considers how agri-environment schemes under the Common Agricultural Policy could be adapted to derive a higher return of ecosystem services, by spatially targeting the services most valued by society and providing incentives for cross-boundary management of certain ecosystem services at catchment or wider spatial scales. The paper reviews evidence that spatially targeted, outcome-based payments may be more economically efficient than current approaches, but identifies a number of challenges, including: scientific uncertainty; pricing of ecosystem services; timing of payments; increased risk to land managers; compliance with World Trade Organisation regulations; and barriers to cross-boundary collaboration in the management of ecosystem services at habitat, catchment or landscape scales. Options are reviewed to overcome these challenges, including: the use of pressure–response functions and modelling approaches to establish causal links between management and ecosystem service delivery and reduce the costs of monitoring; non-market valuation techniques to set prices for ecosystem service delivery; insurance schemes; combining funding from public and private Payment for Ecosystem Service schemes; and options to facilitate cross-boundary management of ecosystem services. Using examples from UK peatlands and the Welsh Glastir agri-environment scheme, the paper suggests ways to link payments for management inputs more effectively to the provision of ecosystem services.

Keywords: Ecosystem services; Agri-environment schemes; UK; Peatland; Collaboration; Spatial targeting (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (42)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecoser:v:9:y:2014:i:c:p:44-53

DOI: 10.1016/j.ecoser.2014.06.008

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