Capacity constraints in operationalisation of payment for ecosystem services (PES) in India: Evidence from land degradation

Abstract

The understanding of the requirement for PES and necessary capacity of stakeholders to conceive, design and execute PES, are critical to its successful operationalisation. Identification and assessment of capacity needs are also prerequisite for PES especially in a developing country like India where institutional setting and functioning are far from the desirable level. In this background, the paper begins with an introduction of the basic concept and centrality of economic valuation in PES. Next, the paper discusses the status of the land degradation problem in India and how the PES can prove to be an efficient tool to manage the declining ecosystem services due to increasing land degradation in the Country. By identifying the direct and indirect drivers of land degradation, the stage is set for designing of appropriate response options for halting the degradation of land which is not only the base of agrarian economy of India but source of livelihood options for the poor. In the subsequent section, the paper assesses the required capacity to operationalise PES in the states where the problem of land degradation is acute. This has been done on the basis of wider consultation with land users (farmers), conservation agencies, Departments of Land Agriculture and related R&D agencies through a structured questionnaire in group meetings in different parts of the Country during 2006-2007. The necessary capacity on behalf of stakeholders like the Local, State and National level institutions have been mapped out. The result from the survey suggests that while the capacity to understand the ecosystem services is adequate, the capacity to do valuation of incremental change in the ecosystem services is not sufficient and the State still needs to invest significant amount of resources before this tool can be used to manage the land based ecosystem services in India.

Enhancing ecosystem services with no-till

“…Adoption of recommended management practices by land managers, especially resource-poor farmers, can be promoted through payments for ecosystem services (i.e., carbon sequestration, water resources, improvement and biodiversity enhancement). Thus, assessing societal value of ecosystem services would be relevant, especially in developing countries 138 with predominantly resource-poor farmers and smallholders. These indicators can provide the basis of an appropriate framework.…”

“…Being myopic by nature, humans’ desires to make quick economic gains by cutting corners could degrade soils and jeopardize natural resources. Thus, assessing societal value of ecosystem services would be relevant, especially in developing countries 138 with predominantly resource-poor farmers and smallholders. A just pricing system for ecosystem services could promote the adoption of NT and recommended management practices.…”

The maturation of ecosystem services: Social and policy research expands, but whither biophysically informed valuation?

“…The continued interest in ‘total value’ (Costanza et al., 2014) estimates associated with the wholesale loss of a habitat, ecosystem or even biome—despite their lack of decision‐aiding—can be explained by their utility as a pragmatically useful signal for raising awareness of natural capital itself (Nature, 1998). This paradox of apparent utility was best expressed by the juxtaposition of Michael Toman's critique of the $33T figure as ‘a serious underestimate of infinity’ (without ecosystems, there is no economy; Toman, 1998), and Trudy Cameron's assessment that the effort was ‘a recklessly heroic attempt to do something that's futile … [but] … very useful’ (Nature, 1998).…”

Impacts of land-use change on valued ecosystem service in rapidly urbanized North China Plain

“…Socio-economic changes influence the VES by market price (Schroter et al, 2005;Metzger et al, 2006). In addition, some other demographic, scientific and technological, cultural, and religious factors may also affect VES in different ways (Kumar, 2011).…”