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Conditional Cash Transfers and Payments for Environmental Services—A Conceptual Framework for Explaining and Judging Differences in Outcomes

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  • Martin Persson, U.
  • Alpízar, Francisco
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    Abstract

    We 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 Info

    Article provided by Elsevier in its journal World Development.

    Volume (Year): 43 (2013)
    Issue (Month): C ()
    Pages: 124-137

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    Handle: RePEc:eee:wdevel:v:43:y:2013:i:c:p:124-137

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    Web page: http://www.elsevier.com/locate/worlddev

    Related research

    Keywords: conditional cash transfer; payments for environmental services; additionality; targeting; program evaluation; developing countries;

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