1945

Payments for environmental services, also known as payments for ecosystem services, in essence award environmental stewardship. They represent a systemic instrument that links different stakeholders at different locations through an incentives-based approach. The incentive, a payment or in-kind contribution, is generally used to compensate landholders for activities or services with environmental benefits to society but which imply reduced profits for themselves. For example, when it comes to watershed management, payments for environmental services link interests in the upstream area with needs in the downstream area, for example in terms of water quality or water distribution.

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