Conditional Cash Transfers and Payments for Environmental Services: A Conceptual Framework for Explaining and Judging Differences in Outcomes
AbstractDespite the recent popularity of conditional cash transfers (CCT) and payments for environmental services (PES) programs, what determines their success is not well understood. We developed a conceptual framework to give insight into some of the main determinants of CCT and PES program efficiency that hope to increase investments in human and environmental capital. We used a simple agent-based model and validated the results with empirical data from existing programs. We show that 1) the share of participants who meet the program’s conditions at baseline is a powerful predictor of program efficiency, (2) and selection bias erodes program efficiency to a large extent. (Selection bias stems from agents who already meet program criteria and who self-select into programs at higher rates than those who do not meet the conditions.) Based on these results, we discuss possibilities for improving efficiency—mainly by targeting applicants or increasing payments—and criteria for evaluating and choosing CCT, PES, or other policy instruments.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Resources For the Future in its series Discussion Papers with number dp-11-06-efd.
Date of creation: 27 May 2011
Date of revision:
conditional cash transfer; payment for ecosystem services; program evaluation; additionality;
Find related papers by JEL classification:
- D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Laura B. Rawlings, 2005. "Evaluating the Impact of Conditional Cash Transfer Programs," World Bank Research Observer, World Bank Group, vol. 20(1), pages 29-55.
- Coady, David P. & Grosh, Margaret & Hoddinott, John, 2002.
"Targeting outcomes redux,"
FCND discussion papers
144, International Food Policy Research Institute (IFPRI).
- Wunder, Sven & Engel, Stefanie & Pagiola, Stefano, 2008. "Taking stock: A comparative analysis of payments for environmental services programs in developed and developing countries," Ecological Economics, Elsevier, vol. 65(4), pages 834-852, May.
- Ariel Fiszbein & Norbert Schady & Francisco H. G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications, The World Bank, number 2597, March.
- Kassie, Menale & Yesuf, Mahmud & Köhlin, Gunnar, 2008.
"The Role of Production Risk in Sustainable Land-Management Technology Adoption in the Ethiopian Highlands,"
dp-08-15-efd, Resources For the Future.
- Kassie, Menale & Yesuf, Mahmud & Köhlin, Gunnar, 2009. "The Role of Production Risk in Sustainable Land-Management Technology Adoption in the Ethiopian Highlands," Working Papers in Economics 407, University of Gothenburg, Department of Economics.
- Chaudhury, Nazmul & Parajuli, Dilip, 2006. "Conditional cash transfers and female schooling : the impact of the female school stipend program on public school enrollments in Punjab, Pakistan," Policy Research Working Paper Series 4102, The World Bank.
- David Coady, 2004. "Targeting Outcomes Redux," World Bank Research Observer, World Bank Group, vol. 19(1), pages 61-85.
- Macours, Karen & Schady, Norbert & Vakis, Renos, 2008.
"Cash transfers, behavioral changes, and cognitive development in early childhood : evidence from a randomized experiment,"
Policy Research Working Paper Series
4759, The World Bank.
- Karen Macours & Norbert Schady & Renos Vakis, 2012. "Cash Transfers, Behavioral Changes, and Cognitive Development in Early Childhood: Evidence from a Randomized Experiment," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 247-73, April.
- Karen Macours & Norbert Schady & Renos Vakis, 2011. "Cash Transfers, Behavioral Changes, and Cognitive Development in Early Childhood: Evidence from a Randomized Experiment," Working Papers 2011-007, Human Capital and Economic Opportunity Working Group.
- Karen Macours & Norbert Schady & Renos Vakis, 2012. "Cash Transfers, Behavioral Changes, and Cognitive Development in Early Childhood: Evidence from a Randomized Experiment," IDB Publications 62638, Inter-American Development Bank.
- Daniels, Amy E. & Bagstad, Kenneth & Esposito, Valerie & Moulaert, Azur & Rodriguez, Carlos Manuel, 2010. "Understanding the impacts of Costa Rica's PES: Are we asking the right questions?," Ecological Economics, Elsevier, vol. 69(11), pages 2116-2126, September.
- Paul Schultz, T., 2004. "School subsidies for the poor: evaluating the Mexican Progresa poverty program," Journal of Development Economics, Elsevier, vol. 74(1), pages 199-250, June.
- Jishnu Das, 2005. "Reassessing Conditional Cash Transfer Programs," World Bank Research Observer, World Bank Group, vol. 20(1), pages 57-80.
- Subhrendu K. Pattanayak & Sven Wunder & Paul J. Ferraro, 2010. "Show Me the Money: Do Payments Supply Environmental Services in Developing Countries?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(2), pages 254-274, Summer.
- Robalino, Juan & Pfaff, Alexander & Sanchez-Azofefia, G. Arturo & Alpizar, Francisco & Leon, Carlos & Rodriguez, Carlos Manuel, 2008. "Deforestation Impacts of Environmental Services Payments: Costa Rica’s PSA Program 2000–2005," Discussion Papers dp-08-24-efd, Resources For the Future.
- Bulte, Erwin H. & Lipper, Leslie & Stringer, Randy & Zilberman, David, 2008. "Payments for ecosystem services and poverty reduction: concepts, issues, and empirical perspectives," Environment and Development Economics, Cambridge University Press, vol. 13(03), pages 245-254, June.
- Janet Currie, 2004.
"The Take Up of Social Benefits,"
NBER Working Papers
10488, National Bureau of Economic Research, Inc.
- Coady, David P. & Parker, Susan W., 2005.
"Program participation under means-testing and self-selection targeting methods,"
191, International Food Policy Research Institute (IFPRI).
- Coady, David P. & Parker, Susan W., 2005. "Program participation under means-testing and self-selection targeting methods," FCND discussion papers 191, International Food Policy Research Institute (IFPRI).
- Macours, Karen & Vakis, Renos, 2009. "Changing households'investments and aspirations through social interactions : evidence from a randomized transfer program," Policy Research Working Paper Series 5137, The World Bank.
- Alix-Garcia, Jennifer & De Janvry, Alain & Sadoulet, Elisabeth, 2008. "The role of deforestation risk and calibrated compensation in designing payments for environmental services," Environment and Development Economics, Cambridge University Press, vol. 13(03), pages 375-394, June.
- Barham, Tania & Maluccio, John A., 2009. "Eradicating diseases: The effect of conditional cash transfers on vaccination coverage in rural Nicaragua," Journal of Health Economics, Elsevier, vol. 28(3), pages 611-621, May.
- Ferraro, Paul J., 2008. "Asymmetric information and contract design for payments for environmental services," Ecological Economics, Elsevier, vol. 65(4), pages 810-821, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Webmaster).
If references are entirely missing, you can add them using this form.