Designing payments for environmental services in the context of weak property rights and commercial interests
S. Engel; C. Palmer
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Outline: 1. Introduction 2. Game-theoretic model of community-firm interactions 3. Implications for PES design 4. Empirical application 5. Conclusions
Using data collected in Indonesia on actual logging fees received by communities, we illustrate how the theoretical results could be used in empirical analysis to guide PES design. Our results are likely to be useful in other cases where local people make resource use decisions but have weak property rights over these resources, and where external commercial forces are present.
(Excerpt from corresponding paper Abstract)