Payments for ecosystem services from watershed protection: a methodological assessment of the Oasis Project in Brazil

Abstract

This study evaluates the methodology of payment for ecosystem services (PES) adopted in the Oasis Project in order to compensate landowners that voluntarily accept to conserve natural forest areas associated with watershed protection, with special focus on the experience of Apucarana, in the state of Paraná, Brazil. It is argued that the establishment of a payment scheme combining the opportunity cost of land and indices for the quality and quantity of conservation (considering water resources, natural areas conservation, and best agricultural practices) guarantees more efficiency in terms of the conservation area that can be achieved using the same financial resources. This study also discusses other conditions for the successful implementation of new PES opportunities in Brazil, such as the involvement of local authorities, monitoring, and sources of funding.