Using Referenda to Improve Targeting and Decrease Costs of Conditional Cash Transfers
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 prefe...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/951191547752842409/Using-Referenda-to-Improve-Targeting-and-Decrease-Costs-of-Conditional-Cash-Transfers http://hdl.handle.net/10986/31176 |
| Summary: | 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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