Using referenda to improve targeting and decrease costs of conditional cash transfers

Jennifer M. Alix-Garcia, Katharine Sims and Daniel J. Phaneuf

Journal of Public Economics, 2019, vol. 176, issue C, 179-194

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. We illustrate this in the context of Mexico's Payments for Ecosystem Services Program, and find 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. We also simulate modified payment schedules based on predicted WTA and demonstrate that these could reduce program cost.

Keywords: Targeting; Conditional cash transfers; Payments for ecosystem services; Stated preference (search for similar items in EconPapers)
JEL-codes: D04 O13 Q28 Q58 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0047272719300799
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Using Referenda to Improve Targeting and Decrease Costs of Conditional Cash Transfers (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:176:y:2019:i:c:p:179-194

DOI: 10.1016/j.jpubeco.2019.06.001

Access Statistics for this article

Journal of Public Economics is currently edited by R. Boadway and J. Poterba

More articles in Journal of Public Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().