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Using Referenda to Improve Targeting and Decrease Costs of Conditional Cash Transfers

Author

Listed:
  • Alix-Garcia,Jennifer M.
  • Sims,Katharine R. Emans
  • Phaneuf,Daniel J.

Abstract

Cost-effective allocation of conditional cash transfers (CCT) requires identifying recipients with low opportunity costs who might change behavior. This paper develops a low-cost approach for improving program implementation by using a stated preference, referendum-style survey question to calculate willingness to accept (WTA) for CCT contracts. This is illustrated in the context of Mexico's Payments for Ecosystem Services Program, with the paper finding that the estimated social cost based on WTA is substantially lower than actual payments. Simulation of three geographic targeting approaches shows that joint selection using deforestation risk and WTA could increase program impact under the same budget. The paper also simulates modified payment schedules based on predicted WTA and demonstrates that these could reduce program cost.

Suggested Citation

  • Alix-Garcia,Jennifer M. & Sims,Katharine R. Emans & Phaneuf,Daniel J., 2019. "Using Referenda to Improve Targeting and Decrease Costs of Conditional Cash Transfers," Policy Research Working Paper Series 8708, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8708
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    Cited by:

    1. Giudice, Renzo & Börner, Jan, 2024. "Cost-effectiveness and income effects of alternative forest conservation policy mixes for the Peruvian Amazon," Land Use Policy, Elsevier, vol. 143(C).
    2. Giffoni, Francesco & Florio, Massimo, 2023. "Public support of science: A contingent valuation study of citizens' attitudes about CERN with and without information about implicit taxes," Research Policy, Elsevier, vol. 52(1).
    3. David R. Heres & Alejandro Lopez-Feldman & Juan M. Torres-Rojo, 2025. "The impact of economic returns to land uses on tropical forest conservation and conversion: Evidence from Mexico 2002-2011," Working Paper Series Sobre México 2025001, Sobre México. Temas en economía.
    4. Haseeb, Muhammad & Vyborny, Kate, 2022. "Data, discretion and institutional capacity: Evidence from cash transfers in Pakistan," Journal of Public Economics, Elsevier, vol. 206(C).
    5. Deutschmann, Joshua W. & Postepska, Agnieszka & Sarr, Leopold, 2021. "Measuring willingness to pay for reliable electricity: Evidence from Senegal," World Development, Elsevier, vol. 138(C).

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    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation

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