Payments for watershed services (PWS) are a new water policy instrument that aim to ensure that the providers of non-marketed water services are paid for their efforts.
PWS differ from traditional top-down regulatory approaches in that markets are created to manage water resources and the goods and services they provide. A key challenge lies in understanding what payment schemes are most effective under which circumstances, and who should pay and how much.
A global assessment of PWS schemes is carried out to better understand what institutional and economic design factors make these schemes successful and how well they translate into long-term environmental performance.
Professor Brouwer is the Executive Director of the Water Institute and Professor in the Department of Economics in the Faculty of Arts.