Spatial targeting of payments for environmental services: A tool for boosting conservation benefits

PES has emerged as a popular approach to incentivize landowners in preserving ecosystems by translating non-market environmental services into financial rewards. However, the lack of spatial targeting may reduce efficiency. Addressing this, a tool incorporating spatial differentiation based on environmental service provision, risk levels, and participation costs was developed. Testing this tool in Costa Rica's Nicoya Peninsula, it enhanced the financial efficiency of forest-focused PES programs. Results underscored the importance of aligning payments with landowner heterogeneity in participation costs and considering environmental service potential.