Payments for ecosystem services (PES) are market-based approaches used to incentivize conservation-related activities. This paper draws on an argument put forth in a recent New York Times article to assess the effectiveness of PES schemes to mitigate deforestation in the Brazilian Amazon. The authors examine the economic and social factors associated with PES schemes, available alternatives including penalties and persuasion and implementation challenges. The authors conclude that the feasibility of PES schemes is context-specific and prior to implementation in the Brazilian Amazon, a number of factors should be considered. Stakeholder participation, scales of the various drivers of deforestation and property rights issues are among the most important. This paper offers recommendations for further research to better understand the impact of PES schemes on the local livelihoods and human well-being.