sustainability Article An Agent-Based Sustainability Perspective on Payment for Ecosystem Services: Analytical Framework and Empirical Application Zhenglei Xie 1 , Bing-Bing Zhou 2 , Hanzeyu Xu 3 , Le Zhang 4 and Jing Wang 1,* 1 College of Marine Science & Engineering, Nanjing Normal University, Nanjing 210023, China;
[email protected] 2 School of Sustainability, Arizona State University, Tempe, AZ 85287, USA;
[email protected] 3 School of Geography, Nanjing Normal University, Nanjing 210023, China;
[email protected] 4 School of Geography and Environment, Jiangxi Normal University, Nanchang 330022, China;
[email protected] * Correspondence:
[email protected]; Tel.: +86-25-8589-8551 Abstract: Payment for Ecosystem Services (PES), a market-based policy instrument for the con- servation and environmental management that aims to coordinate the interests of upstream and downstream ecosystem service (ES) stakeholders, has been adopted worldwide. However, the suc- cess of PES depends on the desirability of programs targeting rural communities and smallholders. In this article, an agent-based sustainability perspective on PES was proposed and applied to exam- ine a PES case study of the Converting-Orchard-to-Forest (COF) project in Dongjiang Headwater Watershed (DHW). We used household interview-based information and associated secondary data to quantitatively assess the environmental consequences and livelihood impacts of the COF project. The findings show that: (1) the COF participants at the upstream suffered from substantial income loss due to decreased orchard area; (2) the participants’ chemical fertilizer and compound fertilizer consumption was larger than their nonparticipating counterparts; and (3) the COF participants and Citation: Xie, Z.; Zhou, B.-B.; Xu, H.; nonparticipants increased the material assets and reduced their fuelwood use and increased the Zhang, L.; Wang, J.