Managing forests for global and local ecosystem services: A case study of carbon, water and livelihoods from eastern Indonesia

Despite a recent increase of interest in global payment for ecosystem services (PES) mechanisms, there has been little comprehensive assessment of PES impacts on ecosystem services (ESs) at smaller scales. Better understanding of localized impacts of global PES can help balance ES deliveries for global benefits with those for meeting landscape and local level needs. Using a case study from eastern Indonesia, we assessed trade-offs and potential synergies between global PES (e.g. REDD+ for forest carbon) and landscape level ESs (e.g., water quantity, quality, regulation) and local ESs (e.g. forest products for food, energy, livelihoods). Realistic land use change scenarios and potential carbon credits were estimated based on historical land use changes and in-depth interviews with stakeholders. We applied a process-based hydrologic model to estimate changes in watershed services due to land use changes. Finally, local community's forest uses were surveyed to understand locally realized ESs. The results show empirical evidence that, without careful consideration of local impacts, a PES mechanism to protect global ESs can have negative consequences for local ecosystem services. We present management alternatives designed to maximize positive synergies between different ESs at varying scales.