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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

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.

Suggested Citation

  • Martin Persson, U. & Alpízar, Francisco, 2013. "Conditional Cash Transfers and Payments for Environmental Services—A Conceptual Framework for Explaining and Judging Differences in Outcomes," World Development, Elsevier, vol. 43(C), pages 124-137.
  • Handle: RePEc:eee:wdevel:v:43:y:2013:i:c:p:124-137
    DOI: 10.1016/j.worlddev.2012.10.006
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    Cited by:

    1. Gwenole Le Velly & Alexandre Sauquet & Sergio Cortina-Villar, 2015. "PES Impact and Leakages over Several Cohorts: The Case of PSA-H in Yucatan, Mexico," Working Papers halshs-01228371, HAL.
    2. repec:eee:ecolec:v:146:y:2018:i:c:p:347-358 is not listed on IDEAS
    3. repec:kap:enreec:v:67:y:2017:i:1:d:10.1007_s10640-015-9981-2 is not listed on IDEAS
    4. Gatiso, Tsegaye T. & Vollan, Björn & Nuppenau, Ernst-August, 2015. "Resource scarcity and democratic elections in commons dilemmas: An experiment on forest use in Ethiopia," Ecological Economics, Elsevier, vol. 114(C), pages 199-207.
    5. repec:eee:wdevel:v:99:y:2017:i:c:p:498-517 is not listed on IDEAS
    6. repec:eee:ecoser:v:29:y:2018:i:pa:p:116-127 is not listed on IDEAS
    7. repec:eee:wdevel:v:96:y:2017:i:c:p:359-374 is not listed on IDEAS
    8. Mohebalian, Phillip M. & Aguilar, Francisco X., 2016. "Additionality and design of forest conservation programs: Insights from Ecuador's Socio Bosque Program," Forest Policy and Economics, Elsevier, vol. 71(C), pages 103-114.

    More about this item

    Keywords

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

    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

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