The hibernation sites of the monarch butterfly (Danaus plexippus, L.) were discovered in central Mexico in 1975 and, following the decree of a protected area in 1986, processes of deforestation and forest degradation were triggered on the socially owned land in question. Further deterioration has occurred since the expansion and designation of the area as the Monarch Butterfly Biosphere Reserve in 2000. An innovative programme of economic incentives was established to compensate the affected properties in the core zone for curtailment of their forest use and to pay for environmental services; however, some of the agrarian communities were in disagreement with this programme. Orthophotographs from 1994 were compared with high-resolution satellite images from 2017 in order to determine forest-cover trends in the areas incentivized by Payment for Environmental Services to avoid deforestation and those areas that were not incentivized. The results show an overall recovery of 2% in forest area between 1994 and 2017, while a 5% increase in the deforested area is notable in the core zone. The findings indicate that, for the establishment of an effective protected area on social property lands, consensus must be achieved across all of the communities in order to avoid subsequent forest loss.

Payments for environmental services have been popularly used in environmental management and an increasing number of studies assesses their contribution to local livelihoods. This study employs propensity score matching with a dataset of 404 indigenous households in the Central Highlands of Vietnam to evaluate the effect of payments for forest environmental services (PFES) on their livelihoods. Participating in PFES increased households' employment and income from activities related to natural forests. Income from PFES allowed households to enhance productive investment and promote income from cultivation activities. All of this, in turn, increased their annual income, job satisfaction, living expenditures, and reduced the amount of any loan. Additionally, PFES enhanced opportunities to participate in training courses and traditional community activities. This confirms that PFES is not only a good initiative for forest management but also a livelihood policy for communities.

This article investigates the use of payments for environmental services to support a wildlife corridor between two Priority Tiger Conservation Landscapes in central Sumatra, Indonesia. Several hundred smallholders operate within a Protection Forest linking the Tiger Conservation Landscapes. This study explores the willingness of these smallholders to accept a payment requiring them to forgo access to their land for five years. In addition to asking households directly what they would be willing to accept (WTA), we also ask them to infer what their neighbour would accept. The study finds evidence of hypothetical bias in the conventional WTA values, with a statistically significant difference between what people say they would be willing to accept when surveyed, compared to what they say would actually be willing to accept in a ‘real life’ situation. We show how inferred valuation techniques can mitigate against this.

Deforestation and forest degradation in the Peruvian Amazon represent a major threat to biodiversity-related ecosystem services and the global climate. In 2010, the Peruvian Ministry of Environment launched the National Forest Conservation Program for Climate Change Mitigation, an innovative approach to maintaining forest cover of over 54 million hectares of land in protected areas and indigenous and peasant communities. A key component is a payments for environmental services scheme encouraging investments in sustainable land and forest uses in community-controlled territories. We conducted an ex-ante assessment of how the program would play out in terms of conservation cost–effectiveness, income effects and distributional (equity) outcomes if payments were up-scaled, as intended, to all native communities in the Peruvian Amazon. Our spatially explicit impact assessment relied on remotely sensed deforestation data and field data-supported estimates of conservation opportunity costs. We found that the spatially heterogeneous distribution of forestland and economic returns to multiple land uses across communities results in important tradeoffs between hypothetical cost–effectiveness, poverty alleviation and equity outcomes. Nevertheless, our scenario analyses suggested that alternative design options for payment schemes could improve both cost–effectiveness and equity outcomes simultaneously.

To address human–wildlife conflicts and the related threat of extinction of the African lion, in 2003, the Maasailand Preservation Trust established a fund at the Mbirikani Group Ranch in southern Kenya to provide monetary compensation for livestock killed by wildlife. In this paper, the policy arrangement approach (PAA) is used to analyse this arrangement as a form of payment for environmental services (PES). Although there has been a considerable reduction in the number of lions killed, the analysis reveals several limitations of this arrangement, including three main side effects, namely it has initiated a process that is difficult to sustain or reverse, created a new cycle of dependence and widened the gap between different groups in the community. In conclusion, the drawbacks of this type of compensation fund must be addressed by combining such arrangements with other public and private policies and initiatives. Careful examination and comparison of different kinds of experiments with PES-like arrangements are required to further build understanding of the potential and different contributions of public and private, market-based initiatives in biodiversity governance.

Global conservation policy and global capitalism have become increasingly intertwined over the last decade. The move towards ‘green capitalism’ has manifested itself in diverse ways, most notably in the expansion of payments for environmental services and attempts to commodify nature. However, there are concerns that prioritizing the financial value of nature could undermine efforts to conserve biodiversity. One particularly strong set of critiques has emerged from political economy. While providing rich theoretical and empirical insights into the potential downsides of green capitalism, the literature is often dense and difficult for non-specialists to navigate. Here I review and translate its main concepts and critiques for a conservation audience. I begin by exploring the basic process of commodity exchange. I then consider nature as a reluctant and uncooperative commodity that often requires new institutions and technologies to be commodified. This means conservation organizations play a key role in green capitalism's political economy. These developments are likely to have considerable social and environmental impacts, with a highly uneven distribution of costs and benefits.

Some conservation finance strategies feature taxes on nature's benign, and arguably educational, uses. This applies to a recent proposal to extract payment from producers of nature films and also to past efforts to raise entrance fees to protected areas. We argue that, as they are currently formulated, it is misleading to label these proposals as payments for environmental service schemes, as they lack voluntary and conditional payments. Rather, they are a form of taxation. Such revenue-seeking measures may prove to be short-sighted. They will raise prices and curtail the demand for those environmental services that embody some element of education, thus reducing public exposure to nature. This could diminish public awareness, curb people's biophilia and devalue Nature's ‘existence values’. This drive for more conservation cash income in the short term could undermine a broad, long-term societal basis for conservation and its future financing.