Payment for Ecosystem Service (PES) for simultaneously targeting the environment and poverty in developing countries: A systematic review

Payment for Ecosystem Services (PES) has recently become an appealing policy tool for simultaneously addressing environmental and poverty-related objectives. However, the empirical literature on the effectiveness of PES remains contentious and widely debated. This study reviewed research that evaluated the simultaneity and design features of PES schemes in developing countries. Accordingly, simultaneity was found in 39.4% of the reviewed studies, while positive environmental and poverty outcomes were reported in 91 and 45.5% of the cases, respectively. Analysis of Variance (ANOVA) tests indicated significant variations in the effects of some PES design features on simultaneity. Hence, schemes that were effectively monitored, implemented strict conditions, and involved signed agreements with communities demonstrated higher success rates. The study concludes that the potential of PES as a "silver bullet" is not an unrealistic policy expectation. Improving its effectiveness through enhanced tenure security, income diversification, and increased employment opportunities should be prioritized. Moreover, strong monitoring, conditionality, and collective targeting of ecosystem service providers contribute to achieving simultaneity. Key words: Payment for ecosystem services, simultaneity, environmental impact, poverty impact.