The role of payments for environmental services in Costa Rica’s policymix

Abstract

Payments for Environmental Services (PES) and conservation policies. A PES is an economic instrument that addresses an environmental externality through a variable payment, cash or in-kind. In here, providers or sellers of environmental services (public or private) respond to the offer of a payment a service buyer (private company, NGO, local or central government agency) who is distinguishable from the seller. Contracts are voluntary, at least on the supply side, and conditional on previously agreed land use that is expected to provide an environmental service. Ideally, payments should be variable and linked to the level of environmental service provided. In the practice other arrangements exist, including in-kind, and one-off payments, at the expense of reduced conditionality.