Incentives for Ecosystem Services

Sources of incentives

Incentives exist in different forms and can be implemented along a range of initiatives, from regulatory to voluntary, and including public programmes and private initiatives.

Incentives include regulated offsets and emissions trading, to direct Payments for Ecosystem Services (PES), certification, marketing labels and conforming to cultural norms. These mechanisms can provide negative dis-incentives, such as prohibition of use, fines and taxes or positive incentives, such as training, direct payment to compensate for land-set aside, improved market access. Combining these incentives can increase ecosystem services outcomes at lower social costs.

The diagram below illustrates and describes different sources of short- and long-term incentive mechanisms, with examples of their implementation.

Garrett, L. and Neves, B. (2016) Incentives for Ecosystem Services: Spectrum. Food and Agriculture Organization of the United Nations, Rome, Italy.