Title: Compensation mechanism for damage from ecosystem services deterioration: constitutive characteristic
Authors: Oksana Veklych; Oleksandra Karintseva; Andriy Yevdokymov; Encarna Guillamon-Saorin
Addresses: Department of Ecosystem Assessment of Natural Resource Potential, Public Institution 'Institute of Environmental Economics and Sustainable Development of the National Academy of Sciences of Ukraine', Boulevard Shevchenko, 60, Kiev, 01032, Ukraine ' Department of Economics, Entrepreneurship and Business Administration, Oleg Balatskyi Academic and Research Institute of Finance, Economics and Management, Sumy State University, 2, Rimsky-Korsakov Str., UA-40007, Sumy, Ukraine ' Department of Economics, Entrepreneurship and Business Administration, Oleg Balatskyi Academic and Research Institute of Finance, Economics and Management, Sumy State University, 2, Rimsky-Korsakov Str., UA-40007, Sumy, Ukraine ' University Carlos III of Madrid, Calle Madrid, 126, 28903 Getafe, Madrid, Spain
Abstract: A growing attention of researchers and politicians to the processes of formation and implementation of the environmental compensation mechanism is fixed in the last decade. Environmental compensation has been viewed as a national or regional regulatory mechanism that contributes to balancing the goal of environmental conservation with the goals of sustainable socio-economic development. The literature on the ecosystem service has developed the terminology of the eco-compensation mechanism. Still, they do not define its functional structure within its framework, in particular, a compensation mechanism for damage from the deterioration of ecosystem services. We characterised this crucial but relatively understudied component of the eco-compensation mechanism and suggested a general formula for determining the magnitude of compensatory payments for damages from degradation/destruction of ecosystem services, which will help to improve the implementation of compensatory payments in decision-making as well as drive green economic activity.
Keywords: ecosystem services; environmental damage; ecosystem degradation; compensation for ecosystem services; eco-compensation mechanism; the magnitude of compensatory payments.
International Journal of Global Environmental Issues, 2020 Vol.19 No.1/2/3, pp.129 - 142
Received: 14 Oct 2019
Accepted: 05 Jun 2020
Published online: 10 May 2021 *