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The conditions for effective mechanisms of compensation and rewards for environmental services

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This is the 7th paper in a series of 9 papers prepared as part of the pan-tropical scoping study of compensation and rewards for environmental services: the conceptual framework (ICRAF Working Paper 32), 5 issue papers (Paper 36, 37, 38, 39, 40) and 3 workshop reports (Paper 33, 34, 35). This paper considers the conditions that determine the effectiveness of compensation and reward mechanisms. The paper takes deductive and inductive approaches to a ddressing the question. A series of 11 hypotheses are derived from theories of institutional change, environmental policy diffusion, and the co-dependence between different types of policy instruments. Eight case studies, all of which were considered at regional workshops on compensation for environmental services, are reviewed in the latter part of the paper. The cases, from Latin America, Africa and Asia, cover a range of environmen tal services and policy contexts. Overall the results suggest the following conditions to be important in many of the cases: (1) market opportunities and localized scarcity for particular environmental services; (2) international environmental agreements, international organizations, and international networks; (3) government policies and public attitudes toward government environmental responsibility, security of individual and group property rights, and market s; and (4) the strength of the regulatory regime affecting the environment.

DOI:
https://doi.org/10.5716/WP14958.PDF
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