Focus                          
Protection Money:
a New Approach to Rangeland Management
Céline Dutilly-Diane, Nancy McCarthy,
Francis Turkelboom, Adriana Bruggeman, Jim Tiedeman, Kenneth Street, and Gianluca Serra
Degradation of natural resources affects
not only those who
directly use these resources, but
many others as
well. Solution?
Pay users to use
resources more
sustainably.
Rangeland degradation is an acute problem throughout the CWANA region (Central and West Asia, North Africa). Most previous interventions – introducing new range management technologies, strengthening local institutions – have not proved effective. But there is a possible alternative, known as Payment for Environmental Services, PES. A multidisciplinary team from three institutions – ICARDA, the International Food Policy Research Institute and CIRAD, the French Agricultural Research Center for International Development – is studying the PES concept. Will it work in dry areas? Can it promote more sustainable management of rangelands in CWANA? Under what conditions?


Livestock herders have little incentive to prevent over-grazing and rangeland degradation.

Who benefits? Well managed rangelands provide a range of services at different scales.
Scale   Environmental services supplied Benefits Beneficiaries/users
GLOBAL











NATIONAL





LOCAL
Carbon sequestration


Plant and animal biodiversity


Reduction in dust storms





Aquifer recharge
Flood reduction



Increased water productivity
Decrease in soil degradation
Increase in plant biomass
Mitigates global climate change


Healthier resources for future generations

Improved health, lower maintenance costs for infrastructure and industry, less damage to farming systems

Increased water availability
Less damage to infrastructure



Higher livestock productivity
International community, countries, private firms

Conservation groups, tourism industry, private firms

Tourism industry, urban populations, governments




Water users
State (public infrastructure), utility companies, downstream population

Local herders



What is PES?
The services that a healthy natural ecosystem provides are rarely appreciated until the damage becomes obvious. Often, land users do not consider these services when they make decisions on resource use, since they do not pay for them and receive no compensation for conserving them. And even when they understand the consequences, they are often forced to over-exploit resources simply to survive. For example, livestock can accelerate rangeland degradation in dry areas. Herders keep more animals than the land can support and often over-exploit grazing areas, because grazing is free, while animal feed is expensive.

A well-managed rangeland provides not only grazing for livestock, but various other services: carbon sequestration, conservation of plant and animal biodiversity, reduction of wind erosion (by reducing the frequency and severity of dust storms), and better water management (reducing surface runoff, reducing flood damage, recharging groundwater). Correspondingly, rangeland degradation affects not only the direct users (livestock herders) but also millions of others who benefit indirectly from environmental services.

The basic idea behind PES is that indirect beneficiaries should pay the direct users, thus providing them with a clear financial incentive to protect the range.

PES has been used elsewhere to manage forests and watersheds. If it can work on rangelands, the implications would be huge. Rangelands cover more than 750 million hectares across CWANA, and are the main source of livelihood for poor rural households. But most rangelands are degraded, and getting worse. Better management would improve food security and sustainability for millions of people; and even small improvements will yield enormous pay-offs.


The problems of implementation
PES is fine in theory, but various problems must be sorted out before it can work in practice. Rangeland services operate at various scales, from local to global. That can make it hard to identify who should pay, and how much. For example, carbon sequestration and biodiversity conservation benefit everyone including future generations. Since specific beneficiaries cannot be identified, it is impossible to recover payment. Nonetheless, as awareness grows, governments, international NGOs and even private companies are now willing to pay for these ‘global’ services.

Other environmental services are beneficial at local or regional scales, so beneficiaries could perhaps be identified and charged. For example, reduction in sedimentation will prevent damage to reservoirs and waterways and benefit specific communities who use this water.

The next requirement will be to establish the infrastructure needed for a ‘market’ in environmental services to develop, and to minimize transaction costs, e.g. the costs of identifying potential buyers, negotiating and enforcing contracts, monitoring and quantifying environmental services in order to set ‘prices’. If transaction costs are high, livestock herders will receive a smaller share of any funds collected through PES schemes.

If it is hard to identify who will pay, it is equally hard to identify who will receive PES payments. Most rangelands in CWANA are owned jointly by the community; and some are completely open-access, shared by several communities. Some users traditionally have more rights than others (e.g. residents vs seasonal migrants).

So how will PES payments be shared? First, effective mechanisms must be established for identifying current rights holders, to make sure poor and marginalized groups do not lose their pre-existing rights. These mechanisms must be developed keeping in mind possible changes in property rights systems, which are being discussed in several countries. Also, ways must be found to identify and enforce the responsibilities of each group of users, to manage the ecosystem sustainably.

Collective community action
To develop a PES framework, we need to understand what factors affect capacity at the local level to provide environmental services. Both individual and community are important. Capacity will depend on the individual's incentive to preserve or rehabilitate rangelands, as well as the community's ability to organize the supply of environmental services and enforce management/rehabilitation plans. Individual incentives will in turn depend on the technical options chosen. It is, therefore, crucial to make a proper economic analysis of the technologies and management options available.

PES planners must also consider how heterogeneity among rangeland users will affect individuals' incentives to comply with conservation/management programs. Rangeland users are usually a heterogeneous group, differing in terms of what rangeland products they rely on (forage, fuel wood, medicinal herbs), exploitation levels (herd sizes), degree of access and use, or total wealth (additional sources of income). Different types of users will obtain different benefits, so negotiating costs amongst them – and costs of collective action for implementing the program – will probably be high. The costs/benefits to an individual will determine whether the individual will participate; and will also affect the costs of monitoring and enforcement that the group as a whole will have to bear.

Will PES work?
Most rangelands in CWANA are affected by desertification, but solutions are not easy, for two reasons. First, most rangelands are communally owned, not private, and this raises a host of social, legal and economic issues. Second, this is a dry region, so many of the rangeland management options available in favorable areas are ruled out. This makes it all the more important to identify and evaluate alternative management and institutional options.

PES could be viable, provided it is carefully planned and implemented. ICARDA plans to develop a series of pilot sites in West Asia and North Africa, for more detailed studies on different approaches to rangeland management (including PES), and particularly on the institutional issues related to the provision of environmental services.


Poor pastoral communities contribute to rangeland degradation – but are also its first victims.

  ___________________________________________
Dr Céline Dutilly-Diane (c.dutilly-diane@cgiar.org) is a socio-economist, working in Aleppo on a joint appointment between ICARDA and CIRAD, France. Dr Nancy McCarthy is Research Fellow at IFPRI, USA. Dr Francis Turkelboom (f.turkelboom@cgiar.org), Dr Adriana Bruggeman (a.bruggeman@cgiar.org) and Dr Kenneth Street (k.street@cgiar.org) are rangeland, hydrology and genetic resources specialists, respectively, at ICARDA. Dr Jim Tiedeman is a US-based range ecologist. Dr Gianluca Serra is a conservation biologist in Italy.
   
© 2008 International Center for Agricultural Research in the Dry Areas (ICARDA). See copyright and disclaimer information.