Conditional Cash Transfers and Payments for Environmental Services—A Conceptual Framework for Explaining and Judging Differences in Outcomes
AbstractWe develop a conceptual framework elucidating the main determinants of the impact of Conditional Cash Transfer (CCT) and Payments for Environmental Services (PES) programs. Using a simple multi-agent model and evaluations of existing programs, we show that (1) the share of the population who would meet the program’s conditions in the absence of payments is a powerful predictor of program efficiency, and that (2) program efficiency is eroded by selection bias (people who already meet conditions self-select into the programs at higher rates than others). We then discuss possibilities for increasing efficiency and criteria for evaluating and choosing between CCTs/PES or other policy instruments.
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Bibliographic InfoArticle provided by Elsevier in its journal World Development.
Volume (Year): 43 (2013)
Issue (Month): C ()
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Web page: http://www.elsevier.com/locate/worlddev
conditional cash transfer; payments for environmental services; additionality; targeting; program evaluation; developing countries;
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