payment for ecosystem services

Payments for Ecosystem Services (PES) are a specific class of approach, used to facilitate voluntary transaction between a provider and a user of a service, conditioned on natural resource management rules for dealing with environmental externalities. PES is created to deal with market failures, environmental externalities, property rights problems and asymmetric information between economic actors.

Voluntary transactions that generate offsite services and are established to enable service users to pay resource providers for the conditional provision of the desired ecosystem service.

A payment mechanism that involves a series of payments to land or other natural resource owners in return for a guaranteed flow of ecosystem services or certain actions likely to enhance their provision over-and-above what would otherwise be provided in the absence of payment.

Payments for ecosystem services (PES) is a term used to describe a process whereas a beneficiary or user of an ecosystem service makes a direct or indirect payment to a provider of that service. PES involve a series of payments to land or other natural resource owners in return for a guaranteed flow of ecosystem services or certain actions likely to enhance their provision over-¬and-above what would otherwise be provided in the absence of payment.