Markets for ecosystem services: a potential tool for multilateral environmental agreements
2006
A.K. Duraiappah
This paper discusses markets for ecosystem services (MES), which is an alternative approach for dealing with the way ecosystem services are used. The MES is proposed to have an important role in sustainable use of ecosystem services and in reducing poverty throughgenerating financial resourcesdiverting funds to environmentally-friendly technologiescreating incentives for investmentincreasing involvement of the private business sector in environmental management.<UL/>The body of the paper looks in greater detail at the aspects of MES, including case studies, from which future work can learn.The final section of the paper discusses challenges and opportunities; giving the following steps for creating a pro-poor MES using a Multilateral Environmental Agreement (MEA) framework:identify bundles of ecosystem services and related MEAsdetermine the total socio-economic value of the current flow of benefits from an ecosystemdetermine the net socio-economic benefits of an intervention that alters ecosystem conditionsexamine how the costs and benefits of an ecosystem (or an intervention) are distributedidentify potential financing sources for conservation and sustainable use of ecosystem servicesidentify and design institutional mechanisms to ensure equitable outcomes for MES initiatives.
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