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

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  • 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.

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  • 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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    3. 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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    More about this item

    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;
    All these keywords.

    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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