PDF Environmental Finance and Development (Routledge Studies in Ecological Economics)

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Based on comparative analysis of national environmental strategies and financial needs, and their links with strategic development documents in five selected countries Bulgaria, Romania, Slovenia, Croatia, Turkey the book identifies main achievements and remaining challenges in the main areas of environmental regulation: nature protection, water, waste, air and climate change. For each area the same concept is applied: current situation is presented, followed by an overview of institutional and legal frameworks. Division of competences between actors at the same or at different levels is addressed.

Costs of implementation are estimated and possible sources of financing identified. Introduction 1. Development Strategies, Environmental Protection and Financing 2. Nature Protection 3. Water Sector 4.

Sustainable development

Waste Sector 5. Air Sector 6. Climate Change. Learn more…. Routledge eBooks are available through VitalSource.


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Most VitalSource eBooks are available in a reflowable EPUB format which allows you to resize text to suit you and enables other accessibility features. The socio-cultural context, including what is considered an appropriate distribution of rights and obligations with respect to natural resources are critical at this point, but also ethical aspects need to be considered. The discussion section of this paper will come back to these aspects in more detail.

The framework reminds practitioners that for different reasons it may not be appropriate to reward ES provision, to ask ES beneficiaries to contribute or ES degraders to compensate for damage.

Sustainable Development Capabilities Needs and Well being Routledge Studies in Ecological Economics

Similarly, not all innovative business opportunities are appropriate to pursue. Our experience in applying the framework has shown that inappropriate or unfeasible opportunities such as asking people to pay for clean air, rewarding farmers for obeying the law, selling access to sacred places, etc. Nevertheless, the following questions serve as an additional safeguard, and they can also help to identify additional conditions or areas of support that are required for a successful implementation of an opportunity:.

We recommend that these questions be discussed among a broader team, including through consultation with key stakeholders. Ultimately a decision needs to be made whether or not a particular opportunity is appropriate and worth pursuing. At this point, suitable economic instruments can be selected.


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  6. Table 1 gives an overview of widely-used economic instruments that have been applied in biodiversity conservation and which stimulate local community involvement and benefit. The reference to the underlying principles helps to link instruments to the opportunities that were identified in task 4. It shows that economic instruments often combine several of the economic principles.

    For instance, PES schemes usually combine contributions from beneficiaries with an incentive mechanism for providers of ecosystem services, and there is often a fund to channel and redistribute the money. Developing and promoting an ecological product often requires securing of start-up financing. It is important to keep in mind that new economic instruments are typically most effective in combination with existing ones and also with non-economic measures.

    Most of the time, there are several sustainability challenges within the same area, and a combination of instruments are more likely to address them successfully than a single one. For instance, a voluntary scheme by which beneficiaries support ecological land management or conservation actions can improve on the minimum requirements already established by direct regulation such as rules for land use within protected areas, limits to fertiliser use, legal restrictions on hunting or logging, etc.

    It may provide additional bonuses for conservation activities in buffer zones or other conservation areas. For this task, it is also crucial to understand and evaluate the functioning of existing economic instruments. In some countries, such as in Thailand during the time of the ECO-BEST project, entrance or user fees were commonly used, but PES and co-management schemes were relatively new ideas, whereas in other countries such as Costa Rica or Mexico a much broader set of instruments were already common.

    In parallel to generating ideas about new economic instruments, Task 6 hence also involves analysing the extent to which the identified ecosystem service opportunities can be captured by existing instruments, by improving their functioning or broadening their scope.

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    The assessment framework hence leads to a screening of potentially suitable instruments. ECO-BEST was a four-year project — to reduce terrestrial biodiversity loss in Thailand and South-East Asia for the benefit of local communities through the application of economic approaches. This would be achieved by improving the ecological condition of the land along Highway , which separates Khao Yai and Thap Lan National Parks see map in Fig. Table 2 presents the results of the application of the assessment framework in Bu Phram.

    Due to the unclear land tenure situation and the lack of trust and collaboration between park management and local communities, the project identified the need for a co-management agreement, within which more specific instruments and benefit-sharing schemes could be developed. These include the promotion of wildlife watching and eco-tourism activities; markets for handicrafts made from native Lan palm leaves; certification schemes for organic agricultural products; financial and other support for farmers who restore grassland and let native tree species grow back; and corporate sponsorship schemes from downstream industries.

    By early, the instruments were still in a design and early implementation phase. It is envisioned that funds would be used to compensate land holders for individual commitments to stop tapioca cultivation and return the land to natural vegetation, restore or improve ecological conditions, under individual agreements with DoKWHA, and that the DPKY-WH Advisory Committee would function as monitoring body.

    Income for the Fund was agreed to come from several sources, including Thai and international wildlife initiatives, Lan palm handicrafts enterprises, and service providers who benefit from eco-tourism in Bu Phram buses, restaurants, hotels, shops, etc. Contributors would receive wildlife conservation stickers and annual certificates.

    Practical efforts to implement economic instruments in conservation and sustainable development planning face considerable risks of failing, either because the measures chosen are not adopted by the stakeholders in the first place or because they do not have the expected positive effect, that is, to actually promote the desired nature conservation and development objectives.

    This section highlights eight key aspects that are critical for improving the likelihood of successful implementation. They are addressed in the academic literature, but not always accessible to practitioners. The proposed assessment framework aims to address and incorporate these aspects. A wide array of methods exists to articulate the monetary value of environmental goods and services e. However, generating information about ecosystem service values, alone, rarely changes the behaviour of individuals, corporations or communities Daily et al. In most circumstances, the benefits and costs of changes accrue to different parties in very different ways, and ultimately motivations and incentive structures have to be modified so that actors involved have an interest in changing their behaviour.

    Conservation actions that involve changing behaviour usually need to be economically attractive for the actors who are expected to adopt them: as a standalone activity and relative to alternative unsustainable land uses, technologies and management practices Barbier, , Emerton, Environmental planning has often underplayed or omitted altogether the issue of ensuring that policy interventions are attractive and feasible from the perspective of those actors whose behaviour should be altered Tisdell, For example, there is a long history of unsuccessful interventions designed to encourage or even demand the adoption of sustainable land management practices by farm households, mainly based on coercive regulatory approaches Jones, An analysis of economic viability of conservation instruments does not stop at comparing the cash income and expenditures associated with different land management options.

    Many stakeholders are the providers, beneficiaries, or degraders of ecosystem services that will be directly affected by the development of any new economic instrument.

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    Other stakeholders could provide critical support for implementation, for instance as intermediaries or as representatives of government agencies or other institutions. In addition, it may be as critical to the overall success to procure at least passive consent or acceptance from those who may initially oppose the initiative.

    Stakeholders are much more likely to accept a proposed policy if it alleviates or at least addresses their constraints. In addition, involving stakeholders from the outset increases the legitimacy of the process. A central question for an appropriate use of economic instruments is whether the beneficiary of an ecosystem service has the right to have free access e. The distribution of rights and obligations of property, access, or use is the reference point for determining which economic principles to use.

    For instance, adherents of economic thinking often propose paying farmers to stop polluting water with pesticides or degrading biodiversity on their land. This is the logic behind many PES schemes: a beneficiary of ecosystem services is asked to pay and money is transferred to the providers. However, proposing such an economic instrument supports the view that land owners may act freely on their own property, even if it negatively affects other members of society.

    Under the Polluter Pays principle he could be obliged to stop or reduce pollution or else be held liable for it. Defining such rights and obligations is essentially a political and legal decision Jack et al.

    If rights and obligations are already defined whether formally in legal terms or informally within culturally accepted norms , then proposals for new instruments that disregard them are likely to face resistance and fail. On the other hand, if rights and obligations are undefined, the choice of economic principles and instruments essentially defines them. In this case, groups that benefit from the current lack of regulation may oppose the new instrument or there may be concerns of setting a precedent in an as yet unregulated field.

    Competition between different services occurs when the provision of one service is enhanced at the cost of reducing the provision of another service. For example, efforts in land management to optimize a single ecosystem service e. It is a key challenge for efficient policy design to identify what type of land management positively influences ecosystem functioning and the sustained provision of all relevant ecosystem services. Otherwise, economic instruments run the risk of focusing on benefits for specific groups while not sufficiently taking into account detrimental effects on others.

    This may lead to well-founded resistance against policies or instruments. Although planting commercial forests may balance carbon emissions, native forests offer various ecosystem services beyond carbon sequestration that are important to different stakeholders Hicks et al.

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    Whereas direct regulations such as protected areas, public land purchase, or prescription of land management standards play a crucial role in safeguarding a minimum level of biodiversity e. Educational and informational measures aimed at learning about and connecting with nature and raising awareness about biodiversity and ecosystem service degradation are often important complements to enhance the acceptance of policies, or increase participation in voluntary conservation and management measures.

    Taking stock of existing policies from different sectors that are related to conservation e. The compatibility and synergies with existing policy measures need to be considered already when screening economic instruments. In addition, acting on ecosystem service opportunities often requires arrangements of multiple instruments across different scales. This includes monitoring and enforcement activities to ensure effective conservation at local level, credible reporting to different audiences at higher scales, and transparent procedures to rule out bribery and ineffective use of funds across scales.

    Local authorities interested in these instruments need to be aware of the scale-sensitivity and establish early on the link to higher level initiatives and policy levels. Practitioners often underestimate the extent to which the application of economics to nature conservation involves ethical dimensions. To begin with, the most common economic principles are fundamentally rooted in considerations of distributive justice. Markets control access to goods and services by deciding how much they will cost.

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    Moreover, many people intuitively reject the use of economic terminology in relation to nature, regarding beauty, wildness, sacredness, etc. Such motivations can reflect the different facets of environmental values and relationships to nature, but are also often related to existing informal community norms that govern a sustainable use of natural resources Ostrom, In order to select and design effective economic instruments it is therefore essential to understand existing motives to safeguard nature and ecosystem services, and to carefully assess how economic instruments are likely to affect them.

    Conservation policy and the academic debate on this topic have witnessed a paradigm shift with high hopes that applying economic instruments can enhance biodiversity conservation and local livelihood. So far however, this potential remains contested. One hindrance to capturing their potential may be the lack of accessible and practical guidance for practitioners to adequately transcribe the economic concepts and ideas into a specific context.

    This article addresses the need for practical guidance. It presents a framework that assists conservation practitioners to identify the opportunities where economic instruments can motivate actors to engage in more sustainable practices and to conserve ecosystems. A more detailed manual for applying the framework in the field can be found in Rode and Wittmer While our guidance on an assessment of ecosystem service opportunities focuses on the local level, many measures for improving the status of ecosystems and local livelihood cannot be enacted solely at the micro scale.

    This can be due to the fact that revenue streams might have to come from the national or even international level, suitable policy instruments fall into the responsibility of national or provincial jurisdiction, or local-level innovations might require higher-level legal changes or institutional reforms. At the same time, socio-economic systems and ecosystem service linkages typically extend over multiple levels of scale. We see three possible ways in which the framework described in this paper can also be useful at higher policy levels. First, it can serve as an important means of linking or crossing the boundaries between different levels of scale and stakeholder groups, and fostering common action which is based on shared interests and joint solutions to conservation and development issues.

    Third, changing economic incentives is decisive at all levels. Identifying opportunities to close gaps between potential enhancers or providers of ecosystem services and their beneficiaries can equally be pursued at regional or national levels. Against an understanding of who benefits from ecosystem services and how incentives can be changed to enhance their provision or at least prevent their further deterioration instruments can better target conservation and livelihood goals.