Redesigning payments for ecosystem services to increase cost-effectiveness * Santiago

The shading in the bottom panel indicates the location of MdC within Chiapas and the location of Chiapas within Mexico. [...] Similarly, because we mapped all of the forest owned by a landholder, we have the polygons for forest area left out of the PES contract for the control group. [...] In the treatment group, 22 out of 31 (71%) complied.5 The lower compliance rate in the treatment group (p- value=0.02) is consistent with the stricter requirements of the full-enrollment contract. [...] We use the sample of pixels with forest at baseline, according to the model, and the outcome variable is an indicator that equals 1 if the pixel was no longer forest cover at endline, according to the model. [...] To see this, note that as p → 0, the area of DEFG becomes 0, and when p is high enough that the line GBD intersects or is above the point C then the triangle ACE that represents the net benefits of deforesting is a strict subset of the payments rectangle DEFG.