This research line aims to develop and evaluate innovative business models for environmental services, as well as the development of Payment for Ecosystem Services (PES) governance models for the water cycle. The study will investigate how PES schemes can be designed and implemented to enhance water resilience, improve ecosystem health, and promote sustainable water use in the face of climate volatility and environmental degradation.

Through in-depth analysis of case studies and comparative assessment of existing PES models, the research will explore mechanisms to incentivise private and community participation in water resource improvement, including aquifer recharge and water quality enhancement. Key areas of investigation include the development of funding structures, the design of incentive systems for upstream-downstream cooperation, and the integration of qualitative environmental benefits into PES frameworks.