Abstract

ABSTRACTPayments for Ecosystem Services (PES) is an innovative initiative to use market instruments for conservation that has spread across the world since the late 1990s. In assessing the efficiency and effectiveness of PES initiatives, global scholarship has focused on an outcome‐oriented approach. This has led to debate on PES programmes’ contributions to, and the trade‐offs between, conservation and development. Taking the Sloping Land Conversion Programme (SLCP) in China as an example, this article uses a process‐oriented analytical approach to provide novel understandings of PES as a specific type of development practice. The article shows how notions of equity and justice, local knowledge and local institutions have played a role in shaping the processes and outcomes of the SLCP. The actions of local stakeholders in an interplay with the state created a space for negotiating, adapting and adjusting PES implementation, which eventually contributed to a local development pathway for meeting both national conservation interests and local economic development needs. This indicates that attention to situated agency can help illuminate how PES can be smoothly implemented and effectively negotiated in developing countries.

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