Payments for Environmental Services Theory

Payments for Environmental Services (PES) is an economic approach that compensates individuals or communities for managing land and resources in ways that provide valuable ecological benefits, such as clean water, carbon storage, or biodiversity conservation. For example, a government or organization might pay a farmer to adopt practices that protect a nearby forest, which helps absorb carbon dioxide. This creates a financial incentive for sustainable practices, encouraging stewardship of the environment while ensuring that the services nature provides are preserved for future generations. Essentially, it recognizes and rewards the role of landowners in maintaining ecological health.