The government of Papua New Guinea wanted to create economic incentives for rural landowners to preserve critical biodiversity and water resources. Crane Associates was hired to identify the feasibility of a wide range of options to implement a Payment for Ecosystem Services program. The work involved: Accounting of natural capital on 550 miles of coastal/marine resources; investigation of valuable natural resources in 25 rural villages though site visits and interviews with 65 stakeholder groups and officials over a 9-month period; market feasibility analysis of economic activities that provide landowners of high valued rainforests with alternatives to selling their rights to extractive industries; Creating policies that reduce or prevent deforestation and degradation while increasing household incomes and quality of life; Analyzing the governance and institutional capacity to implement PES; Conducting an Environmental Benefit Cost Analysis to analyze the impacts of these options. The work resulted in a 10-year strategic plan that includes 12 pilot projects; physical improvements; capacity building programs; and a financial plan.
