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Vorlaufer, Miriam
Ibanez, Marcela
Juanda, Bambang
Wollni, Meike
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EFForTS Discussion Paper Series 18
This paper investigates the trade-off between conservation and equity considerations in the use of payments for environmental services (PES) that implicitly incorporate different distributive justice principles. Using a public good experiment with heterogeneous participants, we compare the effects on additional area conserved and distribution of earnings of two PES schemes: an equal payment and a payment based on Rawls distributional principle, which we refer to as maxi-min payment scheme. The main findings of the framed field experiment conducted in Jambi province (Indonesia) indicate that the introduction of a maxi-min PES scheme can function as a multi-purpose instrument. It realigns the income distribution in favor of low-endowed participants and does not necessarily need to be compromised by lower environmental additionality at the group level.
Payments for Environmental Services
efficiency equity trade-off
public good experiment
endowment heterogeneity
productivity heterogeneity
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Working Paper

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