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Supported by the International Institute for Environment and Development (IIED)
and the World Bank, Bank-Netherlands Watershed Partnership Program"


A Knowledge and Assessment Guide to Support the Development of Payment Arrangements for Watershed Ecosystem Services (PWES). (2004). Prepared by Sylvia S. Tognetti, Guillermo F. Mendoza, Bruce Aylward, Douglas Southgate & Luis Garcia, for the World Bank Environment Department with support from the Bank-Netherlands Watershed Partnership Program, Washington, DC. [Download/English pdf]

Guía para el desarrollo de opciones de pago por servicios ambientales (PSA) de las cuencas hidrológicas. [Download/Español pdf]

This Assessment Guide focuses on identification and quantification of watershed services found in a specific context, highlighting Rules-of-Thumb that emerge from a review of research and case studies. Following an overview of existing initiatives, the Guide identifies the kinds of information needed from a site-specific assessment and provides a framework for organizing it in a way that is relevant and useful for decision-making. Special attention is given to estimation of the water-balance, as a basic framework for investigating ecosystem processes that underpin specific services, and for estimating their magnitude and direction. A subsequent section discusses the use of this information to estimate economic significance of these processes, absent which they cannot properly be considered "services", and for evaluating trade-offs. This is then placed in the context of institutional challenges, although these are not a key focus of the report. The Rules-of-Thumb are only meant to provide a working hypothesis, and thereby serve as a point of departure for the assessment of payment initiatives. Given the broad range of relevant knowledge and perspectives needed to consider the contribution of watershed processes to human well-being, in a specific social and economic context, and large spatial and temporal scales that often make it difficult to link multiple causes and effects of watershed degradation and thereby identify threats to watershed services, this guide should be regarded as preliminary, to be further developed and improved as lessons are learned from implementation. The Flows Bulletin will supplement the guide by covering special topics in assessment as new information emerges, identifying lessons learned from their implementation, and considering their implications for practice.