Facilitation of public Payments for Ecosystem Services through local intermediaries: An institutional analysis of agri‐environmental measure implementation in Germany

Abstract

AbstractEconomic instruments for the management of natural resources and ecosystem services governance have gained importance over the past few years. The development and implementation of large‐scale public Payments for Ecosystem Services (PES) programs as agri‐environmental measures (AEMs) depends on complex governance structures and involves diverse actors and stakeholder groups. However, research on intermediaries within PES implementation is still in its infancy. This article begins to fill this gap by providing an institutional analysis of the implications of a particular intermediary within a PES governance structure: German Landcare Associations (LCAs), which may facilitate AEM implementation in Germany. This analysis will identify the institutional challenges and constraints for cost‐effective and environmentally effective AEMs. Furthermore, we determine possible further institutional conditions that need to be addressed to better support intermediaries in AEM facilitation. To this end, the authors have determined the institutional framework conditions for the present and prospective future involvement of LCAs as intermediaries in the context of AEMs. A special focus has been placed on implications for corresponding transactions costs. The study is based on an online survey including all German LCAs and exploring LCA staff perspectives on AEM implementation. The results of this study emphasize few but severe challenging factors that adversely affect AEM implementation. We show that intermediaries can alleviate institutional implementation challenges and lower transactions costs, particularly by providing effective agri‐environmental information, training and implementational support. The positive effects on implementation are always dependent on the institutional framework and the opportunities and resources provided to the intermediaries.