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

U. Martin Persson and Francisco Alpizar Rodriguez

World Development, 2013, vol. 43, issue C, 124-137

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.

Keywords: conditional cash transfer; payments for environmental services; additionality; targeting; program evaluation; developing countries (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (34)

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Working Paper: Conditional Cash Transfers and Payments for Environmental Services: A Conceptual Framework for Explaining and Judging Differences in Outcomes (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:43:y:2013:i:c:p:124-137

DOI: 10.1016/j.worlddev.2012.10.006

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