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The paper aims to develop a rigorous and systematic framework for the analysis of ‘equity’ that can be used to determine how local equity is affected by externally driven changes in the value of ecosystem services. This study is motivated by the concern that local equity may be harmed, or that existing inequities may be worsened, by regional or global initiatives to pay for different ecosystem services, such as REDD (Reduced Emissions from Deforestation and forest Degradation).