Paying for watershed services in Latin America

A review of current initiatives

Latin American experience with payments for watershed environmental services is examined in this article. Interest in the approach is substantial in the region, probably more so than in other parts of the developing world. However, existing conservation payments frequently lack key features, such as conditionality. Impediments to the approach are analyzed, including factors that drive up costs or interfere with internalization of benefits. Included in this article is detailed examination of three schemes: two local initiatives in Ecuador (one in Pimampiro and the other in Quito), as well as a nationwide program in Mexico.