Use-restricting schemes

Use-restricting Payments for Ecosystem Services (PES) schemes reward providers for conservation, for capping resource extraction and land development, or for fully setting aside areas, such as for protected habitats. Here, landowners are paid for their conservation-opportunity costs, plus possibly for active protection efforts against external threats (Hardner and Rice, 2002 cited by Wunder, 2005).

See also: Asset-building schemes

References

Wunder, S., 2015. Revisiting the Concept of Payments for Environmental Services. Ecological Economics 117: 234–243. DOI: 10.1016/j.ecolecon.2014.08.016

Value chain approaches

are cooperation models to valorise environmental public goods within value chains. To ensure consumer trust, companies increasingly demand greater transparency about the management and delivery of public goods on supplier farms. Some companies even integrate biodiversity or climate indicators into their life cycle assessments or try to gain a competitive advantage through label-based contracts.

Willingness to pay

Maximum monetary amount an individual would be willing to pay in exchange for a particular good or service (Cameron & James, 1987). It can be used to describe people’s preferences, aggregated over individuals to estimate a value of the good or service, or used to estimate benefits in a cost-benefit analysis.

References

Cameron, T.A, and M.D. James, 1987. Estimating Willingness to Pay from Survey Data: An Alternative Pre-Test-Market Evaluation Procedure. Journal of Marketing Research, 24 (4) 389-395. DOI: 10.2307/3151386