Reindeer herders receive compensation based on the amount of carnivore offspring certified on their pastures and not the amount of lost livestock. The method is called performance payment schemes and is a relatively new method where Sweden can be viewed as a pioneer.

The carnivore conservation payment is given to each reindeer herding community as an annual lump-sum. The reindeer herding community then has to decide on the internal payment distribution. CERE's Göran Bostedt took part in a study where they took a closer look at this distribution.

Their study shows that smaller reindeer herding communities, i.e. with fewer members than the average, have a better succession rate at carnivore conservation, which consequently means more compensation.

Why smaller reindeer herding communities are more successful may be related to them using their compensation, to a greater extent, for collective investments. This may indicate that they invest more in conservation whilst larger communities more frequently use their money as compensation to the individual losses for specific herders. Which means that the larger communities transform the performance payment scheme to a compensation for loss instead of an incentive for conservation.

Read more:
(only in Swedish) "Nytt sätt att betala för artbevarande dämpar konflikter med renägare"

"Performance Payments for Groups: The Case of Carnivore Conservation in Northern Sweden" by Astrid Zabel, Göran Bostedt & Stefanie Engel, published in "Environmental and Resource Economics", in December 2014, Volume 59, Issue 4, pp 613-631

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