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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.
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The conditionality of child benefit payments on education has had some success in other countries, however.
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.
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.
Record your receipt of payments.
Adjust for number of payments.
Adjust for frequency of payments.
In other words, consistent with earlier evidence for Australia (e.g. DEEWR, 2008) and elsewhere (e.g. Petrongolo, 2009), tightening the conditionality of PP in 2007 had a significant impact in terms of displacement onto other IS payments.
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.
Even the conditionality of the OMTs can be seen as subjugating monetary to fiscal policy.
One reviewer suggests that the conditionality of the BFA-induced phenotype is a perfect system for such experiments.
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