Demand for water will continue to increase as per capita income rises and the population grows, and climate change can exacerbate the problem through changes in precipitation patterns and quantities, evapotranspiration, and land cover—all of which directly or indirectly affect the amount of...

A theory of payment for ecosystem services (PES) pricing consistent with dynamic efficiency and sustainable income requires optimized shadow prices. Since ecosystem services are generally interdependent, this requires joint optimization across multiple resource stocks. We develop such a theory...

A theory of payment for ecosystem services (PES) pricing consistent with dynamic efficiency and sustainable income requires optimized shadow prices. Since ecosystem services are generally interdependent, this requires joint optimization across multiple resource stocks. We develop such a theory...

This case study refers to the role of Payment for Ecosystem Services (PES) as an economic tool in supporting and promoting sustainable development locally. It was developed for using in both undergraduate and graduate courses in natural resource and environmental economics and economic valuation...

Payment for environmental services (PES) is a promising mechanism for conservation. It also has the potential to contribute to social objectives such as poverty reduction. To promote synergy in the implementation of PES, however, a number of conditions on spatial, economic, ecological, and...

Payments for ecosystem services should be informed by how both the providing-resource and the downstream resource are managed. We develop an integrated model that jointly optimizes conservation investment in a watershed that recharges a downstream aquifer and groundwater extraction from the...

Conserving the watershed can help to preserve the groundwater supplies by avoiding loss of recharge. Preventing overuse of available water through pricing reforms can also substantially increase benefits from groundwater stock. Since efficiency prices are generally higher than the inefficient,...