Question 1: What role does Payment for ecosystem services (PES) play in alleviating rural

poverty?

Answer: Role of Payment for Ecosystem Services in alleviating rural poverty:

1. PES is the payment or ‘green-bonus’ made to the state governments to maintain and
protect the critical ecosystems of the state. The payment amount is governed by the
Finance Commission.
2. These are also the sources of water bodies for the region and 40% of the country and thus
the local-rural population receives additional payment from other villages to prevent the
cattle graze in the common land. This helps the other villages to maintain their check dam
downstream.
3. This system in turn generates revenue for the rural population.
4. Another parameter in distribution of payment is the income distribution of the state.
Thus, the rural population who lives in the region are the most benefitted.
5. The municipal body distributes the amount received from the state government to the
rural population for safeguarding the local ecosystem.
6. As the ecological systems remain protected, this attracts more tourists to the region and
thus provides a source of income to the local rural people.
7. Also, PES ensures that no construction takes place that is harmful for the ecosystem thus,
additional revenues are provided as compensation for the non-development of the region.
This money thus reaches the rural population.
8. Traditional farming practices followed by the poorest farmers, is considered less harmful
to the ecological system thus, these farmers are rewarded for maintaining the ecosystem.
9. Thus, agricultural practices with low ecological footprint are promoted which brings
down the rural poverty.