Environmental Service Incentive Work in the ROA Project: Overview Takumi Sakuyama Economist, ROA Project Workshop on Environmental Services for Poverty Reduction and Food Security Rome, May 2005

Scope of ESI ApproachInstrumentFinancing source GovernmentDirect paymentTaxpayer Tax & chargeProvider CommunityCustomary rules MarketEco-labeling / GI Market price premium Consumer (of products) Eco-tourism Env. trust (club) Entrance fee (toll) Beneficiary (of services)

Overview of ESI work Objectives –ensure socially optimal provision of ES from agriculture –contribute to poverty alleviation and food security Activities –Conceptual and thematic papers –Country case studies on specific ESI –Expert workshops (mid-term and wrap-up) Main Output –pro-poor policy guidance on ESI

Case studies CountrySectorServicesInstruments KenyaPastoral farming Wildlife habitat Park fee MexicoForestrywatershed benefits Direct payment MoroccoMountain farming Landscape, biodiversity Agro- tourism ThailandOrganic farming PhilippinesPaddy farming

Elements of policy guidance How to overcome ‘information constraints’ –lack of scientific information  e.g. assessment tool –lack of market information  e.g. market support centre How to overcome ‘institutional constraints’ –insecure property rights  e.g. formalization of tenure –high transaction costs  e.g. pooling, intermediary How to overcome ‘resource constraints’ –lack of human resources  e.g. training & education –lack of financial resources  e.g. access to funds

Possible outputs Publications –Policy massage  senior policy makers –Handbook  policy makers –Manual  practitioners and NGOs –Special journal articles  academia Dissemination –Leaning workshop at IAAE Conference in August 2006 –Wrap-up expert workshop in late 2006