Paying for Watershed Services: an Effective Tool in the Developing World?

Abstract

Payments for watershed services (PWS) are an increasingly popular conservation and water management tool in developing countries. Some schemes are thriving, and are pro-poor. Others are stalling or have only mixed success. Most rely on public or donor finance; and other sources of funding are unlikely to play a significant role any time soon. In part, financing PWS schemes remains a challenge because the actual evidence for their effectiveness is still scanty -- it is hard to prove that they actually work to benefit both livelihoods and environments. Getting more direct and concrete data on costs and benefits will be crucial to securing the long-term future of PWS schemes