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We investigate the impact of payment conditionality types, i.e. different specifications when to pay and when not to pay, for PES on deforestation and agricultural production in a lab-in-the-field experiment.
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Data on TC related to payment transfers and conditionality compliance are collected using a combination of in-depth interviews with local PFES scheme coordinators, site visits, and secondary data analysis.
The scholarship and empirical application of PES schemes has tended to focus on contract design and conditionality of payments rather than more fundamentally examining whether incentives do indeed influence behaviour in desired ways.
This mis-match concerns issues at the core of the PES principles, namely service-action conditionality, service definition and payment negotiation.
The conditionality of child benefit payments on education has had some success in other countries, however.
We can see this by looking in turn at UBI's main selling points: no conditionality, no means-testing and equal payments to all.
The Fund continued assisting nations experiencing balance of payments deficits and currency crises, but began imposing conditionality on its funding that required countries to adopt policies aimed at reducing deficits through spending cuts and tax increases, reducing protective trade barriers, and contractionary monetary policy.
The guidance is not used to determine whether someone should be sanctioned in the first place (the rules are clear that if a claimants has breached conditionality they will face sanctions) but whether they should subsequently qualify for hardship payments.
It is also likely to have a series of tough messages on welfare, including the need for clear conditionality on benefits and, if possible, an extension of the contributory principle whereby payments that a citizen receives from the state are more clearly linked to what they put in.
However, conditionality does not need to take such a severe form, and the risk that unconditional payments would encourage some people to drift into long-term worklessness can't be discounted.
In addition, payment schedules often did not cover the full duration of the PES contract, which diminished the likely sustainability and conditionality of the schemes.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com