Developing pro-poor markets for environmental services in the ...

1.2 Purpose and objectives of research
This study aims to conduct a preliminary assessment of the development of markets for
environmental services (ES) in the Philippines. The assessment will pay particular attention
to the distribution of costs and benefits among different stakeholder groups, in light of
widespread public concern about the impact of market-based instruments on the poor. It
further aims to include an assessment of the process by which such instruments were
introduced (e.g., the extent of public participation in decision-making).
Ideally, the assessment would address the full social, economic, and environmental impacts
of market-based instruments at every stage, from initial development through to monitoring
and enforcement. In practice though, most instruments are still in the early stages of
development or implementation. Hence this assessment will be limited to the design,
introduction, and preliminary impact of economic instruments. This will include impact on
people’s livelihoods and revenue generation for sustainable management of the resource or
the area.
There are three major objectives of this study. The first involves a documentation of all
efforts undertaken with respect to developing markets for environmental services in the
Philippines. Part of this objective is a brief description of the current environmental services
being provided, and a literature review of some initiatives towards development of MES in
each of these services. The second objective is to conduct a rapid assessment of institutional
mechanisms that have evolved in the development of markets for environmental services.
This would include an analysis of current issues and problems associated with MES
development, as well as recommendations on the necessary elements of institutional
mechanisms based on actual field experiences. Finally, the third objective is to develop and
test a robust framework for monitoring and evaluating the efficacy of markets for
environmental services in three respects:
• Environmental: are market-based approaches effective at protecting and providing the
desired quantity and quality of environmental services, without adverse environmental
impacts?
• Economic: are they more cost-effective than previous or alternative instruments? Do they
create positive incentives for continuous environmental improvement? Do they create
alternative or improved livelihood opportunities for resident community members,
especially the poor?
• Social: are the costs and benefits of MES shared equitably? Are the processes of design
and implementation of MES inclusive, transparent, and flexible, to allow learning and
adaptation while fostering support from key stakeholder groups?
1.3 Methodology
• In developing a socio-economic framework to evaluate MES and assessing the
institutional mechanisms involved, five main questions should be asked:What are the
forms of markets that exist?
• What are the economic instruments used?
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