A review of Payment for Ecosystem Services for the economic internalization of environmental externalities: A water perspective

Abstract The allocation of economic value to environmental goods is intended to internalize the socio-economic and environmental costs of policies implemented and thus recognizes the value of the ecosystem and the consequences of environmental damage. This entails identifying the costs and benefits of management measures for conservation and of degraded ecosystems. The difficulties of this task are: (i) they are goods that have no market and (ii) there is a need for economic funding for conservation purposes. Payment for Ecosystem Services (PES) seeks to internalize the environmental externalities of human actions, ascribing monetary value to Ecosystem Services (ES) and helping decision-mak…