Designing a payment for ecosystem services scheme, the practical obstacles for implementation in arid and semiarid rangelands

Payment for Ecosystem Services (PES) schemes are an innovative solution to reduce environmental degradation. However, most existing experience with PES implementation is related to the agricultural, forestry and marine sectors, and the application of PES in rangelands is limited. Although a PES could be an option to reduce rangeland degradation, there is no specific framework or experience for its implementation in Iran. Financial resources for funding the scheme are important, although funding by itself is not sufficient, and details are important in designing a successful PES system. This study aimed to design and introduce the framework of a PES scheme based on field surveys, information collection and analysis emphasising soil and water conservation functions, and identification and discussion of the challenges and obstacles facing implementation of the designed framework. After delineating the vegetation types on rangeland ecosystems, their current ecological condition was considered the baseline, and minimum and maximum payments were considered, equal to the livestock reduction compensation and the total value of the increased ecosystem services as a result of PES implementation respectively. Results suggest designing the practical steps of PES schemes is complicated despite the concept’s simplicity, and a lack of clear property rights can increase complexity and multiply the costs. Considering different socioeconomic and ecological contexts, and the detailed framework in all the processes of identification and investigation, development, pilot testing, and project operation can increase the effectiveness of PES schemes. Our findings appear useful for policy-making to balance utilisation pressure in natural areas, not only in Iran, but also in many arid and semiarid rangelands elsewhere.