ECOSYSTEM SERVICES, cilt.53, sa.2022, ss.1-14, 2022 (SCI-Expanded)
A B S T R A C T
The evaluation of the cost-effectiveness of Payments for ecosystem services (PES) in fostering positive environmental
outcomes has been central to the scientific debate on their implementation. PES cost-effectiveness can
be affected by a myriad of environmental, institutional and socio-economic factors operating at different spatial
and temporal scales. Moreover, it can be affected by synergies and trade-offs in the provision of ecosystem
services (ES). Planting trees is increasingly considered an effective measure to provide water-related ES. It can
enhance watershed services such as nutrient retention, erosion control, stream flow regulation, protection
against extreme events (e.g., floods and landslides), and lead to a permanent change in land use, replacing
agricultural activities that give rise to diffuse pollution. Very few studies currently exist on the cost-effectiveness
of tree planting for water quality benefits PES schemes in Europe. Including both review and research elements,
this paper highlights challenges in undertaking such assessments. It develops a conceptual framework to help
underpin future studies, with its application to three case studies in Denmark explored. Particular attention is
given to the estimation of environmental effectiveness in the provision of water quality services and the
importance of co-benefits. In the case where we exclude co-benefits from the analysis, the financial costeffectiveness
is always above zero, with central estimates (without discounting environmental improvements)