Groom, Ben 
ORCID: 0000-0003-0729-143X and Palmer, Charles ORCID: 0000-0002-1252-179X
(2010)
Cost-effective provision of environmental services: the role of relaxing market constraints.
Environment and Development Economics, 15 (2).
pp. 219-240.
ISSN 1355-770X
Abstract
Ferraro and Simpson (2002) argue that when markets are competitive, payments for environmental services (PES) are more cost-effective in achieving environmental goals than more indirect approaches such as subsidies to capital. However, when eco-entrepreneurs face non-price rationing in input or output markets, as is typical for credit in developing countries for example, we show that interventions which relax constraints can be more cost-effective than PES. One corollary of this is that such indirect approaches are preferred to PES by interveners (e.g., donors) and eco-entrepreneurs alike. Both of these outcomes are more likely when constraints are severe. This has implications for schemes with dual environment and poverty alleviation objectives.
| Item Type: | Article |
|---|---|
| Official URL: | http://journals.cambridge.org/action/displayJourna... |
| Additional Information: | © 2010 Cambridge University Press |
| Divisions: | Geography & Environment |
| Subjects: | H Social Sciences > HB Economic Theory G Geography. Anthropology. Recreation > GE Environmental Sciences |
| Date Deposited: | 10 May 2010 10:58 |
| Last Modified: | 20 Nov 2024 01:06 |
| URI: | http://eprints.lse.ac.uk/id/eprint/27916 |
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