%0 Articles
%T A service-dominant perspective on payments for ecosystem service offerings
%A Matthies, Brent D.
%D 2016
%J Dissertationes Forestales
%V 2016
%N 219
%R doi:10.14214/df.219
%U http://dissertationesforestales.fi/article/2001
%X The ecosystem service (ES) approach is a means of evaluating service value flows from ecosystems to humans for their well-being. The approach suggests that ecosystem functions are divided into categories according to the benefits derived and utilized by beneficiaries. The ES approach has become a tool for public and private decision-makers, driven by the need to more accurately incorporate environmental externalities into the value creation processes of economic actors.

This research addresses two knowledge gaps within the ES literature. First, a service-centric approach to ES offerings is lacking, resulting in misuse of the appropriate concepts and terms when discussing their role in value networks and value creation. Second, there is limited available knowledge about how to efficiently internalize ES offerings within value networks.

In the first article, a service-dominant value creation (SVC) framework, with supporting terms and concepts, was developed to guide interdisciplinary discussions about the role of ES offerings within value creation processes. The term value-in-impact was proposed as a means for discussing the trade-offs and impacts concerning ES offerings within those processes.

The subsequent three articles addressed the following design aspects of Payment for Ecosystem Service (PES) schemes: (1) sensitivity to parameter inputs, (2) price volatility impacts on service providers, and (3) behavioural economic contributions. Consideration for trade-offs among ES offerings, and between ES offerings and economic objectives were also incorporated. The results indicated that the holistic accounting of ES indicators, to determine the optimal species mixtures, and uncorrelated ES price interactions, to determine the optimal allocation of forest for conservation, led to ecological and financial diversification benefits for service providers. Nudging service providers also led to more socially efficient ES provisioning. In each case, the proposed Ecosystem Service Expectation Value (ESEV) was used to more accurately describe the perpetual provisioning of multiple ES offerings on forestland.