PT  - JOURNAL ARTICLE
AU  - Busch, Jonah
TI  - Supplementing REDD+ with Biodiversity Payments: The Paradox of Paying for Multiple Ecosystem Services
AID  - 10.3368/le.89.4.655
DP  - 2013 Nov 01
TA  - Land Economics
PG  - 655--675
VI  - 89
IP  - 4
4099  - http://le.uwpress.org/content/89/4/655.short
4100  - http://le.uwpress.org/content/89/4/655.full
SO  - Land Econ2013 Nov 01; 89
AB  - An international mechanism to reduce emissions from deforestation using carbon payments (REDD+) can be leveraged to make payments for forests’ biodiversity as well. Paradoxically, under conditions consistent with emerging REDD+ programs, money spent on a mixture of carbon payments and biodiversity payments has the potential to incentivize the provision of greater climate benefits than an equal amount of money spent only on carbon payments. This paradoxical result arises when diversifying payments across multiple services allows a funding agency to spend less on additional rents to existing suppliers of avoided deforestation and more on incentivizing the participation of new suppliers. (JEL Q23, Q54)