The Paradox of Paying for Multiple Ecosystem Services

ecosystem service paradox

A recent working paper opens a debate on the raising of a paradox in REDD+ mechanism. The paper was published by Center for Global Development.

According to author, Jonah Busch, under conditions consistent with emerging REDD+ programs, money spent on a mixture of carbon payments and biodiversity payments has the potential to incentive the provision of greater climate benefits than an equal amount of money spent only on carbon payments.

“This paradoxical result arises when diversifying payments across multiple services allows a funding agency to spend less on additional rents to existing suppliers of avoided deforestation and more on incentivizing the participation of new suppliers, ” says Jonah Busch as in his paper.


Read complete version

Jonah Busch . 2013. “Supplementing REDD+ with Biodiversity Payments: The Paradox of Paying for Multiple Ecosystem Services.” CGD Working Paper 347. Washington, DC: Center for Global Development.