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Payments for Environmental (or Ecosystem) Services (PES) are emerging as new conservation policy tools. The basic concept underlying PES is that users pay to providers of environmental services for ensuring the continual provision of services based on the voluntary contracts. The purpose of this pap...

Payments for Environmental (or Ecosystem) Services (PES) are emerging as new conservation policy tools. The basic concept underlying PES is that users pay to providers of environmental services for ensuring the continual provision of services based on the voluntary contracts. The purpose of this paper is to introduce the concepts and types of PES and to design a pilot PES scheme for biodiversity/ecosystem conservation on Genetic Reserve Forest in Korea. Genetic Reserve Forest is one of the protected areas designated in Korea to maintain forest biodiversity. PES is designed for the pine forests only in Genetic Reserve Forest, which corresponds to 943 ha. Service providers are to manage their forests based on the contracts in ways that maintain and enhance forest biodiversity and receive the payments in return. The payments are calculated as the sum of management, monitoring, and opportunity costs, resulting 1,140,378 won/year/ha (it corresponds to approximately $1,227 based on the 2007 average exchange rate 1$ = 929.2 won). Because PES are relatively new policies, however, more work needs to be done. Future work includes researches on the correlation between forest biodiversity and management practices and the economic evaluation of forest biodiversity. In addition, enhancing awareness on PES and education of stakeholders are warranted to further develop the scheme.

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