Community-based water markets and collective payment for ecosystem services: toward a theory of community-based environmental markets

In the last few decades, scope of governanceauthr solutions for environmental problems has increased substantially. The old trichotomy governance by government, markets, and communities been replaced a new interest in hybrid recognition that no single-governance mode possesses capabilities to address multiple facets, interdependencies, scales current problems. This paper takes stock on experiences combine community-based natural resource management market-based solutions, or as we call them markets (CBEMs). Specifically, draw lessons from literature payment ecosystem services forest context, water context user associations (WUA markets). Similarities across two contexts include role ensure participation, compliance, distributional equity, importance source revenue communities, among others. Differences highlight pay attention authority held (stronger WUA markets) nature market (i.e. whether it is service market). These commonalities differences motivate generating theory CBEMs, is, one builds but also transcends allows compare different contexts.