Payment for Environmental Services as a Sustainability Mechanism: Ecological Modernization and Social Ethics Perspective in the Cidanau Watershed

• Andri Sarifuddin

  Fisheries Socioeconomics, Faculty of Fisheries and Marine Science, Mulawarman University, Indonesia

  Author

Payment for Environmental Services (PES) has emerged as an innovative mechanism to address ecosystem degradation while improving community wellbeing. This article examines the implementation of PES in the Cidanau Watershed through the lens of ecological modernization and social ethics, emphasizing the interconnectedness of humans, the environment, and governance. The study adopts a constructivist paradigm and qualitative approach, utilizing in-depth interviews, observations, and focus group discussions with 16 informants. Findings reveal that PES functions not only as an economic instrument but also as a form of Smart Regulation, fostering institutional innovation, multi-actor dialogue, and participatory governance. The mechanism meets the prerequisites of Strong Ecology by integrating structural changes, state involvement, and community participation in decision-making. Socio-ecological impacts include improved forest cover, water availability, transformation of farming practices toward agroforestry, and strengthened values of sustainability and equity between upstream and downstream communities. This study underscores PES as a market-based policy model aligned with the principles of ecology–society–ethics, supporting community wellbeing and reinforcing socio-ecological harmony. The findings offer valuable insights for sustainable governance development in other regions, particularly within the Global South.

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