ABSTRACT
Sustainable management of water, land and ecosystems (WLE) is a central facet of human well-being and environmental security (Hanjra et al., 2009; Namara et al., 2010). This also intersects with an increasing emphasis on global food security and the failure of world governments to stem the degradation of natural resources, global bio-diversity loss and protection of natural and pristine environments, and their unique role in providing food and invaluable services to mankind. Market-based instruments (MBIs) are the policy tools that can influence human behaviour through market signals and incentives rather than through explicit directives and regulations (Whitten and Young, 2003). They are becoming more popular because of their greater flexibility, effectiveness and efficiency (Whitten et al., 2003) in improving natural resource management for food security and livelihoods. In fact, they are particularly useful where regulatory approaches do not work well to arrest on-going degradation of natural resources.
