Philipp Aerni is Director of the Center for Corporate Responsibility and Sustainability (CCRS) and also Professor for Sustainability and Impact Entrepreneurship at the School of Management Fribourg (HEG-FR). He received his Masters Degree in Geography (with Minors in Environmental Science and Economics) from the University of Zurich and his PhD in Agricultural Economics from ETH Zürich. Prior to his position at CCRS, Dr. Aerni worked as a postdoctoral fellow at the Harvard Kennedy School, the Institute for Environmental Decisions at ETH Zurich, the World Trade Institute at the University of Berne as well as the Food and Agriculture Organisation of the United Nations (FAO). Philipp Aerni is also a senior lecturer at ETH Zurich and the University of Zurich. Among numerous other engagements, he is a member of the Jury of the Swiss Family Business Award, the Forum Genetic Research (SCNAT), and Liberethica (a Platform on ethics, business and religion). As an interdisciplinary social scientist he is interested in the role entrepreneurship and innovation as potential driving forces for inclusive and sustainable change.

Acknowledgements.- Executive Summary.- 1 The Historical Context of Payments for Environmental Services.- 2 Payments for Environmental Services: Revisiting the Theoretical Baseline Assumptions.- 3 The Practical Perspective of Environmental Services Management.- 4 Conclusions.- Annex.

This book addresses the ability of market-based instruments to improve the sustainable provision of environmental services. The author combines field research and insights from the multi-stakeholder dialogue at the FAO to analyze the gap between the predictions provided by theory and the corresponding outcomes in practice. In particular, the author challenges the theory behind Payments for Environmental Services (PES), a concept derived from neoclassical welfare economics, by demonstrating that PES projects often lack financial sustainability unless local entrepreneurs make use of the resulting new networks to create innovative markets for environmental goods. The author calls for a shift of focus from regulation to innovation in projects and policies designed to improve the provision of environmental services. Its spotlight on the positive social impacts of companies that engage in hybrid PES schemes will make the book appealing to practitioners and policymakers alike.