Environmental Safeguard and Sustainable Development : An Insight into Payments for Ecosystem Services

This paper presents a thorough reflection on Payments for Ecosystem Services (PES) programs, which may be viewed as the most innovative tools of the ‘environmental policy toolkit'. These are incentive-based mechanisms, compensating landowners to manage the natural resources under their control in a sustainable way (generating environmental services such as biodiversity protection and ecotourism), instead of clearing land or excessively exploiting their natural resources. After briefly discussing the most significant findings in the environment and development research stream, we will present how the roots of PES lie in public economic theory, with regard in particular to environmental externalities. Later, after debating the proper definition of PES and its main concepts (e.g. additionality, perverse incentives, conditionality), we shall also comment the main case-studies on the topic, in order to provide clear examples of how these instruments may be applied in several different context (i.e. both in developing and developed countries, either by public or private agents). As it shall be shown, given their high adaptability to local conditions, PES are likely to become extremely important in next decades' environment safeguard interventions