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

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

No 8708, Policy Research Working Paper Series from The World Bank

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.

Keywords: Environmental Disasters&Degradation; Global Environment; Conditional Cash Transfers; Services&Transfers to Poor; Disability; Access of Poor to Social Services; Economic Assistance; Biodiversity; Global Environment Facility (search for similar items in EconPapers)
Date: 2019-01-17
New Economics Papers: this item is included in nep-agr, nep-cmp, nep-dcm and nep-env
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Citations: View citations in EconPapers (4)

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Journal Article: Using referenda to improve targeting and decrease costs of conditional cash transfers (2019)
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