The goal of this course is to understand how payments for environmental services (PES) schemes can be designed, how they are currently operating in practice, and what environmental, social and economic outcomes they are having.

The course will focus on both theoretical aspects of the design of the schemes and empirical analysis of the outcomes of existing schemes.

The issues considered in this course will include:

-    The rationale of PES schemes

-    Arguments pro and against PES schemes

-    The economic theory behind PES schemes

-    Key principles of the design, including pricing, transparency, additionality, and conditionality

-    Land and property rights

-    Efficiency vs cost effectiveness of the schemes

-    The role of PES in poverty alleviation

-    Practical applications of PES: climate change, biodiversity, watershed management, coastal management

On completion of the course, students will: 

1. Possess a critical understanding of the theory underpinning payments for environmental services (PES) schemes
2. Have knowledge of the  key design principles of PES schemes
3. Understand the role of PES in environmental management
4. Be able to apply this theoretical understanding to  interventions
5. Be able to verbally communicate the theory and the principles underlying PES schemes

In-class presentation (10%), Case study analysis (40%), Research assignment (50%).

2 hour lecture and 1 hour class discussion per week

No prerequisite course

Some knowledge of environmental economics principles is useful

Reading material will include journal articles and the following text:

Tacconi, L., S. Mahanty, H. Suich eds (2010). Payments for Environmental Services, Forest Conservation and Climate Change: Livelihoods in the REDD?. Edward Elgar, Cheltenham.

The required technology is already available at the Crawford School.