Compensation payments: Opportunities, risks, and considerations

Abstract

The description of economic environmental and forest-related compensation payment mechanisms and arrangements demonstrates the sector’s relevance for tropical forestry, revealing opportunities and risks. The present chapter provides a synthesis of the previous five chapters on the topic, followed by final considerations arguing that policies and agreements based on economic principles represent just one building block out of a pool of measures to promote environmental and forest goods and services. To fully unfold its potentials, these mechanisms and arrangements have to be implemented conjointly with traditional non-economic policies.