Decentralized payments for environmental services: The cases of Pimampiro and PROFAFOR in Ecuador


S. Wunder; M. Alban

Type of Document:
Scholarly Article


Elsevier Press

Date of Publication:

Place of Publication:
Not Available


This article evaluates two established payment for environmental services (PES) schemes in Ecuador: the watershed protection program in Pimampiro and the PROFAFOR carbon sequestration program. The design, effectiveness, and impacts of these schemes are described and compared.


1. Introduction 2. Pimampiro 2.1. Services, stakeholders, and implementation 2.2. Implementation and transaction costs 2.3. Permanence and leakage 2.4. Conditionality, monitoring and sanctions 2.5. Additionality 2.6. Selection of participants 2.7. Welfare effects on disadvantaged groups 2.8. Current situation and next steps 3. PROFAFOR 3.1. Services, stakeholders, and implementation 3.2. Implementation and transaction costs 3.3. Permanence and leakage 3.4. Conditionality, monitoring and sanctions 3.5. Additionality 3.6. Selection of participants 3.7. Welfare effects on disadvantaged groups 3.8. Current situation and next steps 4. Comparisons and conclusions 4.1. PES features and design 4.2. PES amounts and opportunity costs 4.3. Environmental efficiency 4.4. Pro-poor effects 5. Discussion

Additional Bibliographic Information

Ecological Economics 65(4): 685-698

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