Resource information
Payments for Environmental Services
(PES) are one of the instruments that countries might use to
try to reduce deforestation, and hence receive payments for
Reduced Emissions from Deforestation and forest Degradation
(REDD). This paper discusses four aspects related to the use
of PES as an instrument to implement an avoided
deforestation program, based on a review of PES experiences
in Latin America. First, the paper discusses the
applicability of PES in the context of REDD. PES is only one
of the instruments that can be used to reduce deforestation.
Some types of deforestation problems may not be amenable to
the use of PES, while others might be better addressed with
other instruments. Second, the paper examines the evidence
on the effectiveness of PES as a tool to reduce
deforestation. Although it seems intuitive to think that
paying for forest conservation would reduce deforestation,
the available evidence from existing PES programs is mixed.
Third, the paper discusses several welfare considerations
arising from the possible use of PES as a tool to reduce
deforestation. That REDD be implemented in ways that do not
harm the welfare of forest-dependent peoples has been an
important part of the debate.
