Marketing several environmental services from a single area can help access diverse sources of funding and make conservation a more competitive land use. In Bolivia's Los Negros valley (Department of Santa Cruz), bordering the Ambor

Decentralization reforms in Indonesia have led to local communities negotiating logging agreements with timber companies for relatively low financial payoffs and at high environmental cost. This paper analyzes the potential of payments for environmental services (PES) to provide an alternative to logging for these communities and to induce forest conservation.

The Earth's climate is changing because the composition of our atmosphere is being altered, primarily as a consequence of human activity. We are now also experiencing a non-cyclical rise in the global temperature caused by the accumulation of the so-called "greenhouse gases"--carbon dioxide, methane, nitrous oxide and others.

Visitors to Vrindavan and the fabled land of Lord Krishna, called Braj Bhoomi, are often taken aback by its ramshackle, dirty condition. It has dried up ancient water bodies or kunds, denuded forests and lots of garbage. It also has a dreaded mining mafia running around with dynamite, digging holes and blowing up sacred hills.

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 (ES). In this introductory paper, we set the stage for the rest of this Special Issue of Ecological Economics by reviewing the main issues arising in PES design and implementation and discussing these in the light of environmental economics. We start with a discussion of PES definition and scope.