The State of Food and Agriculture 2007

Paying Farmers for Environmental Services

image of The State of Food and Agriculture 2007

The State of Food and Agriculture 2007 explores the potential for agriculture to provide enhanced levels of environmental services alongside the production of food and fibre. The report concludes that demand for environmental services from agriculture – including climate change mitigation, improved watershed management and biodiversity preservation – will increase in the future, but better incentives to farmers are needed if agriculture is to meet this demand.



Designing effective payments for environmental services

The effectiveness of PES programmes depends on their design and implementation. These factors must be addressed within the specific political, socio-economic and environmental context of the programme. Cost-effectiveness is a key criterion for programme design and constitutes the point of departure for this chapter. The focus is on issues involved in designing PES programmes for costeffectiveness in meeting environmental objectives. Chapter 6 will broaden the discussion to include design issues as they relate to impacts on the poor and the possibilities for participation of the poor in PES programmes.


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