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Journal ArticleDOI

The working for water programme Evolution of a payments for ecosystem services mechanism that addresses both poverty and ecosystem service delivery in South Africa

TL;DR: A payments for ecosystem services (PES) system came about in South Africa with the establishment of the government-funded Working for Water (WfW) programme that cleared mountain catchments and riparian zones of invasive alien plants to restore natural fire regimes, the productive potential of land, biodiversity, and hydrological functioning as mentioned in this paper.
About: This article is published in Ecological Economics.The article was published on 2008-05-01 and is currently open access. It has received 354 citations till now. The article focuses on the topics: Ecosystem services & Water supply.

Summary (2 min read)

Introduction

  • The success of the programme is largely attributed to it being mainly funded as a poverty-relief initiative, although water users also contribute through their water fees.
  • Conservation in South Africa has historically been perceived as a luxury and the concern of the wealthy, especially since almost all conservation efforts are focused on the protected areas, which tend to be geographic, economic, and sociopolitical enclaves.
  • Payments for ecosystem services (PES) is a mechanism that could play a key role in achieving conservation goals and sustaining ecosystem health more generally.
  • Water scarcity South Africa is a chronically water stressed country with between 500 m3 and 1000 m3 of water available per person per year (Ashton, 2002).

2.2. Threats to water supply

  • In the grassland catchment areas, seepage wetlands act as sponges that catch much of the summer rainfall.
  • These plantations intercept stream flow, especially when close to watercourses.
  • Cullis et al. (2007) estimate that the current loss of usable water due to invasive alien plants is 695 million m3, equivalent to 4% of the total registered water use.
  • If left unchecked, this could increase to more than 2,720 million m3, or 16% of total registered water use (Table 1).

2.3. The restoration process

  • The control of invasive alien plants involves both manual clearing and the release of biological control agents.
  • As long as seedbanks remain or there are nearby seed sources from invasive ornamental trees, windbreaks, or plantations, maintenance must be on-going, but costs are very low (less than R50 per ha per treatment which could be at intervals of 1-3 years depending on the species in question) if carried out regularly.
  • Background Payments for Ecosystem Services in South Africa have largely come about through the establishment of the Working for Water (WfW) programme in 1995.
  • The bulk of the funding over the last 11 years has been generated through poverty relief programmes (the Reconstruction and Development Programme, then the Special Public Works Programmes, which evolved to become the Expanded Public Works Programme).
  • The funding from this source is focussed on the control of invasive alien plants with acknowledged negative impacts on water resources (DWAF, 2007).

3.2. Mandatory payments by water users

  • The DWAF includes a water resource management fee in the water tariff charged to consumers.
  • The water charge levied for catchment management does not distinguish between richer and poorer consumers per se, but it is superimposed on a stepped pricing system that does.
  • The aim is to extend this to all 19 water management areas as some of the most stressed catchments have not yet been included.
  • A total of between R23 million and R48 million per annum was allocated from funds raised through DWAF's water tariffs (Table 2).

3.3. Voluntary payments by water users

  • Certain municipalities have entered into payment agreements with WfW to alleviate localised water shortages.
  • Among these commodities, Pagiola and Platais (2007) argue that water services have the most potential for application of the PES approach as water users (1) are easy to identify; (2) receive clear, well-defined benefits; and (3) often already have financing mechanisms—none of which is true for biodiversity.
  • The Working for Water Programme in South Africa: Restoration of water resources (natural capital) through the clearing of invasive alien plants from riparian areas in South Africa- costs and water benefits.

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Citations
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Journal ArticleDOI
TL;DR: Payments for environmental services (PES) have attracted increasing interest as a mechanism to translate external, non-market values of the environment into real financial incentives for local actors to provide environmental services as mentioned in this paper.

2,130 citations

Journal ArticleDOI
TL;DR: In this paper, the authors argue that the effectiveness of the ecosystem services framework in decision-making is thwarted by conflation of services, values, and benefits, and that failure to appropriately treat diverse kinds of values.

1,269 citations


Additional excerpts

  • ...2007; Engel et al., 2008; Juniper, 2011; Muñoz-Piña et al., 2008; Turpie et al., 2008)....

    [...]

Journal ArticleDOI
TL;DR: In this article, the authors synthesize the information presented, according to case characteristics with respect to design, costs, environmental effectiveness, and other outcomes, and conclude that user-financed PES programs were better targeted, more closely tailored to local conditions and needs, had better monitoring and a greater willingness to enforce conditionality, and had far fewer confounding side objectives than government-funded programs.

1,157 citations

Journal ArticleDOI
TL;DR: In this article, the authors review several approaches to include economic considerations in biodiversity conservation, and show cases where monetary valuation is relevant and other cases where it is controversial and even counterproductive, as it undermines the objectives of conservation.
Abstract: After 1992 many conservation biologists thought that the use of economic instruments would be more effective to halt biodiversity loss than policies based on setting apart some natural spaces outside the market. At the same time there was a new elaboration of the concept of ecosystem services and, since 1997, there have been attempts at costing in money terms the loss of ecosystem services and biodiversity, including the high profile TEEB (The Economics of Ecosystems and Biodiversity) project (2008-2011). Our discussion rests on instances showing the analytical implications of three main socio-economic meanings of biodiversity loss: 1) the loss of natural capital; 2) the loss of ecosystem functions; and 3) the loss of cultural values and human rights to livelihood. We review several approaches to include economic considerations in biodiversity conservation. We show cases where monetary valuation is relevant and other cases where it is controversial and even counterproductive, as it undermines the objectives of conservation.

729 citations

Journal ArticleDOI
TL;DR: Why ecosystem service information has yet to fundamentally change decision-making is explored and a path forward is suggested that emphasizes developing solid evidence linking decisions to impacts on natural capital and ecosystem services, and then to human well-being.
Abstract: The central challenge of the 21st century is to develop economic, social, and governance systems capable of ending poverty and achieving sustainable levels of population and consumption while securing the life-support systems underpinning current and future human well-being. Essential to meeting this challenge is the incorporation of natural capital and the ecosystem services it provides into decision-making. We explore progress and crucial gaps at this frontier, reflecting upon the 10 y since the Millennium Ecosystem Assessment. We focus on three key dimensions of progress and ongoing challenges: raising awareness of the interdependence of ecosystems and human well-being, advancing the fundamental interdisciplinary science of ecosystem services, and implementing this science in decisions to restore natural capital and use it sustainably. Awareness of human dependence on nature is at an all-time high, the science of ecosystem services is rapidly advancing, and talk of natural capital is now common from governments to corporate boardrooms. However, successful implementation is still in early stages. We explore why ecosystem service information has yet to fundamentally change decision-making and suggest a path forward that emphasizes: (i) developing solid evidence linking decisions to impacts on natural capital and ecosystem services, and then to human well-being; (ii) working closely with leaders in government, business, and civil society to develop the knowledge, tools, and practices necessary to integrate natural capital and ecosystem services into everyday decision-making; and (iii) reforming institutions to change policy and practices to better align private short-term goals with societal long-term goals.

720 citations

References
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Book
24 Nov 2003
TL;DR: The Millennium Ecosystem Assessment (MEA) as discussed by the authors is a conceptual framework for analysis and decision-making of ecosystems and human well-being that was developed through interactions among the experts involved in the MA as well as stakeholders who will use its findings.
Abstract: This first report of the Millennium Ecosystem Assessment describes the conceptual framework that is being used in the MA. It is not a formal assessment of the literature, but rather a scientifically informed presentation of the choices made by the assessment team in structuring the analysis and framing the issues. The conceptual framework elaborated in this report describes the approach and assumptions that will underlie the analysis conducted in the Millennium Ecosystem Assessment. The framework was developed through interactions among the experts involved in the MA as well as stakeholders who will use its findings. It represents one means of examining the linkages between ecosystems and human well-being that is both scientifically credible and relevant to decision-makers. This framework for analysis and decision-making should be of use to a wide array of individuals and institutions in government, the private sector, and civil society that seek to incorporate considerations of ecosystem services in their assessments, plans, and actions.

2,427 citations

MonographDOI
Sven Wunder1
04 Mar 2005
TL;DR: Payments for environmental services (PES) are part of a new and more direct conservation paradigm, explicitly recognizing the need to bridge the interests of landowners and outsiders as discussed by the authors, but many field practitioners and prospective service buyers and sellers remain skeptical about the concept.
Abstract: Payments for environmental services (PES) are part of a new and more direct conservation paradigm, explicitly recognizing the need to bridge the interests of landowners and outsiders. Eloquent theoretical assessments have praised the absolute advantages of PES over traditional conservation approaches. Some pilot PES exist in the tropics, but many field practitioners and prospective service buyers and sellers remain skeptical about the concept. This paper aims to help demystify PES for non-economists, starting with a simple and coherent definition of the term. It then provides practical ‘how-to' hints for PES design. It considers the likely niche for PES in the portfolio of conservation approaches. This assessment is based on a literature review, combined with field observations from research in Latin America and Asia. It concludes that service users will continue to drive PES, but their willingness to pay will only rise if schemes can demonstrate clear additionality vis-a-vis carefully established baselines, if trust-building processes with service providers are sustained, and PES recipients' livelihood dynamics is better understood. PES best suits intermediate and/or projected threat scenarios, often in marginal lands with moderate conservation opportunity costs. People facing credible but medium-sized environmental degradation are more likely to become PES recipients than those living in relative harmony with Nature. The choice between PES cash and in-kind payments is highly context-dependent. Poor PES recipients are likely to gain from participation, though their access might be constrained and non-participating landless poor could lose out. PES is a highly promising conservation approach that can benefit buyers, sellers and improve the resource base, but it is unlikely to completely outstrip other conservation instruments.

1,616 citations

01 Jan 2002
TL;DR: In this article, the authors define markets as regular gatherings of people for the purpose of buying and selling goods or services, distinguished from public payments to private landowners for ecosystem services, or private deals between a few buyers and sellers.
Abstract: Ever since the passage of the 1990 amendments to the US Clean Air act and the creation of a market in sulfur dioxide (SO2), it has become clear that market mechanisms can be effectively used to achieve environmental policies. But markets are neither infallible nor automatic. They have blind spots and they need to be designed effectively if they are to effectively achieve environmental ends. This paper defines markets as regular gatherings of people for the purpose of buying and selling goods or services. Such markets are distinguished from public payments to private landowners for ecosystem services, or private deals between a few buyers and sellers. It then provides a brief overview of several existing and proposed environmental markets, including: the Acid Rain market in the US, the Emissions Trading Scheme in the UK, the proposed Emissions Trading System for the European Union, the US market in greenhouse gases proposed by Senators McCain and Lieberman, the US market in wetlands mitigation credits, and the renewable energy market in Texas. From these the paper attempts to draw some lessons and conclusions. URI http://hdl.handle.net/10919/66848 Collections Sustainable Agriculture and Natural Resource Management (SANREM) Knowledgebase [4055] Silver bullet or fools' gold: A global review of markets for forest environmental services and their impact on the poor ​ Landell-Mills, N.; Porras, I.T. (London: International Institute for Environment and Development, 2002) Market-based approaches to environmental management are increasingly common in all sectors of the economy. Forestry is no exception. Governments around the world have opened the door to private sector participation in all ... Exploring the market for voluntary carbon offsets ​ Taiyab, N. (London: International Institute for Environment and Development (IIED), 2006) This paper explores the potential for financing small-scale high-benefit sustainable development projects through the voluntary and retail sector of the carbon market. Through a literature review and interviews with offset ... Creating markets for environmental stewardship: Potential benefits and problems ​ Ribaudo, M. (Washington, D.C.: Economic Research Service, USDA, 2008) This topical article from the United States Department of Agriculture summarizes some of the potential benefits and problems faced by defining environmental services markets in the United States. Though the discussion is ... If you believe that any material in VTechWorks should be removed, please see our Making environmental markets work: lessons from early experience with sulfur, carbon, wetlands, and other related markets 

823 citations

Journal ArticleDOI
TL;DR: By concentrating on these hot-spot areas where needs are greatest and where the pay-off from safeguard measures would be greatest, conservationists can engage in a more systematised response to the challenge of large scale impending extinctions.

792 citations

BookDOI
01 Jan 2002
TL;DR: In this article, market-based mechanisms for forest conservation and development and development are discussed, as well as the benefits of using these mechanisms in the context of water management and watershed preservation.
Abstract: List of Tables, Figures, and Boxes * Foreword * Acknowledgements * List of Contributors * Acronyms and Abbreviations * Market-based Mechanisms for Forest Conservation and Development * Forest Environmental Services: An Overview * Paying for Water Services in Central America: Learning from Costa Rica * Sharing the Benefits of Watershed Management in Sukhomajri, India * Paying to Protect Watershed Services: Wetland Banking in the United States * Financing Watershed Conservation: the FONAG Water Fund in Quito, Ecuador * Selling Biodiversity in a Coffee Cup: Shade-grown Coffee and Conservation in Mesoamerica * Conserving Land Privately: Spontaneous Markets for Land Conservation in Chile * Linking Biodiversity Prospecting and Forest Conservation * Using Fiscal Instruments to Encourage Conservation: Municipal Responses to the 'Ecological' Value-added Tax in Parana and Minas Geras, Brazil * Developing a Market for Forest Carbon in British Columbia * Helping Indigenous Farmers to Participate in the International Market for Carbon Services: The Case of Australian Forests * Insuring Forest Sinks * Making Market-based Mechanisms Work for Forests and People * Index

551 citations

Frequently Asked Questions (12)
Q1. What have the authors contributed in "The working for water programme: evolution of a payments for ecosystem services mechanism that addresses both poverty and ecosystem service delivery in south africa" ?

This emerging PES system differs from others in that the service providers are previously unemployed individuals that tender for contracts to restore public or private lands, rather than the landowners themselves. There is a strong case for concentrating on the most valuable services provided by ecosystems, such as water supply, carbon sequestration, and fire protection, and using these as 'umbrella services ' to achieve a range of conservation goals. The model has since expanded into other types of ecosystem restoration and these have the potential to merge into a general programme of ecosystem service provision within a broader public works programme. The future prospects for expansion of PES for hydrological services are further strengthened by the legal requirement that Catchment Management Agencies be established. 

The other services will include wetland and riparian restoration (restoration of erosion gullies, etc.) and management, integrated grazing and land use regimes and an integrated veld and forest fire management regime. 

Because of the increasing scarcity of water in South Africa, there has been a high level of support of research into the impacts of invasive alien plants on water supply. 

Given the scale of the existing impact and the fact that it continues to increase as the extent and density of the invasions increases, a national control programme is essential if the country's water resources are to be protected. 

Cullis et al. (2007) estimate that the current loss of usable water due to invasive alien plants is 695 million m3, equivalent to 4% of the total registered water use. 

In the Cape Mountain and river systems, infestation by alien invasive plants that escaped from commercial plantations and woodlots on farms—particularly Pinus, Acacia and Eucalyptus species—results in reductions in runoff. 

Initial estimates are that approximately 54% of all riparian areas also have an invasion density of at least 25%, or, effectively, some 460,000 ha (Versveld et al., 1998; Cullis et al., 2007). 

The way for introducing PES as a broad-scale conservation tool for achieving both biodiversity conservation and ecosystem service delivery has been paved by the development and evolution of the WfW-model. 

The invasion of river courses and of important catchment areas is particularly problematic in terms of streamflow reduction (Versveld et al., 1998). 

With the existence of WfW and its related programmes, and the legislative environment regarding the control of catchment water resources, it will be possible to implement these systems with little need for major innovations or institutional reform. 

With this rationale in mind, major conservation initiatives in South Africa are looking to PES systems, mainly for water, as potential financing mechanisms. 

The capital costs of clearing dense stands of Prosopis are simply unaffordable to land users (around R2000 to R2500/ha for initial clearing alone), where the retail value of the land varies between R600 and RIOOO/ha.