Companies preferences and willingness to pay for ecosystem services credits through an online-marketplace

authored by: Cheng Chen, Bettina Matzdorf, Marlen Davis
Abstract: While greater business financing is important to halt the loss of biodiversity and environmental degradation, only a limited number of payments for ecosystem services (PES) schemes receive voluntary financing from companies. Recently, pilot private ecosystem marketplaces have emerged to function as an intermediary between suppliers and private buyers for ecosystem services projects with varying levels of validation, verification, additionality and permanence. However, business interests have not yet been the topic of much empirical research. To answer our research question on the preferences of business sector towards the ecosystem services credits that support the provision of environmental public goods, we collected survey data from 618 German companies through an online survey in 2019. We analysed characteristics of companies, perceived opportunities and threats, types of ecosystem services credits and the willingness to spend as factors to understand companies’ preferences. We showed that the ecosystem services credits concept appeals to a small proportion of companies. We found that companies have so far felt little pressure from assumed expectation. For example, there is no significant effect on companies’ interest in nature conservation steering from the link between company and nature. A nationwide internet platform, along with scientifically-based predictions of project impacts, was particularly appreciated by companies as it facilitated easier engagement by revealing regional project opportunities. Climate protection, water quality, and biodiversity emerged as the most appealing ecosystem services categories for companies. Additionally, companies expressed a preference for bundling relevant ecosystem services options. Our study highlights the significance of considering companies’ local preferences. Furthermore, we observed that the majority of companies demonstrated a willingness to make low threshold and flexible contributions. By presenting descriptive evidences based on primary data from a large number of companies, this research addresses a previously existing gap of business interests in financing ecosystem services provision via new innovative markets.
Organisation(s): Institute of Environmental Planning
External Organisation(s): Leibniz Centre for Agricultural Landscape Research (ZALF)
Type: Article
Journal: Ecosystem Services
Volume: 69
No. of pages: 10
ISSN: 2212-0416
Publication date: 10.2024
Publication status: Published
Peer reviewed: Yes
ASJC Scopus subject areas: Global and Planetary Change, Geography, Planning and Development, Ecology, Agricultural and Biological Sciences (miscellaneous), Nature and Landscape Conservation, Management, Monitoring, Policy and Law
Electronic version(s): https://doi.org/10.1016/j.ecoser.2024.101653 (Access: Closed)

BibTeX

@article{e6ef8a47013b412abbc369fc0bb513db,
title = "Companies preferences and willingness to pay for ecosystem services credits through an online-marketplace",
abstract = "While greater business financing is important to halt the loss of biodiversity and environmental degradation, only a limited number of payments for ecosystem services (PES) schemes receive voluntary financing from companies. Recently, pilot private ecosystem marketplaces have emerged to function as an intermediary between suppliers and private buyers for ecosystem services projects with varying levels of validation, verification, additionality and permanence. However, business interests have not yet been the topic of much empirical research. To answer our research question on the preferences of business sector towards the ecosystem services credits that support the provision of environmental public goods, we collected survey data from 618 German companies through an online survey in 2019. We analysed characteristics of companies, perceived opportunities and threats, types of ecosystem services credits and the willingness to spend as factors to understand companies{\textquoteright} preferences. We showed that the ecosystem services credits concept appeals to a small proportion of companies. We found that companies have so far felt little pressure from assumed expectation. For example, there is no significant effect on companies{\textquoteright} interest in nature conservation steering from the link between company and nature. A nationwide internet platform, along with scientifically-based predictions of project impacts, was particularly appreciated by companies as it facilitated easier engagement by revealing regional project opportunities. Climate protection, water quality, and biodiversity emerged as the most appealing ecosystem services categories for companies. Additionally, companies expressed a preference for bundling relevant ecosystem services options. Our study highlights the significance of considering companies{\textquoteright} local preferences. Furthermore, we observed that the majority of companies demonstrated a willingness to make low threshold and flexible contributions. By presenting descriptive evidences based on primary data from a large number of companies, this research addresses a previously existing gap of business interests in financing ecosystem services provision via new innovative markets.",
keywords = "Biodiversity, Business, Certification, Corporate, Payments for ecosystem services, Private sector",
author = "Cheng Chen and Bettina Matzdorf and Marlen Davis",
note = "Publisher Copyright: {\textcopyright} 2024",
year = "2024",
month = oct,
doi = "10.1016/j.ecoser.2024.101653",
language = "English",
volume = "69",
journal = "Ecosystem Services",
issn = "2212-0416",
publisher = "Elsevier BV",
}