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Cash transfer program and willingness to pay for environmental services among the ultra-poor in Pakistan

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Abstract

This study examines the impact of cash support from the Benazir Income Support Program (BISP) on willingness to pay for environmental services (WTPfES) among the ultra-poor in Pakistan using a quasi-experimental approach. We conduct empirical analysis using cross-sectional data of 1200 households by applying the regression discontinuity design (RDD) approach. The RDD-based empirical results show that BISP cash support positively impacts the willingness to pay for environmental services such as drinking water, sanitation, and waste disposal management services. The empirical analysis further depicts that cash assistance has a positive and significant impact on the willingness to participate in environmental services at the household and community levels. In addition, the additional income from the BISP helps families achieve better living standards and improve environmental services. The use of environmental services ultimately leads to better health among the target groups. The government may expand unconditional cash support to increase the use of quality environmental services.

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Fig. 1

Source: Author’s calculation based on survey data

Fig. 2

Source: Author’s calculations

Fig. 3

Source: Author’s calculations based on survey data

Fig. 4

Source: Author’s own calculations based on survey data

Fig. 5

Source: Author’s calculations based on survey data

Fig. 6

Source: Author’s analysis of survey data

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Data availability

The data and replication files are available on request from the corresponding author.

Notes

  1. A bulk of literature has established a significant role of CTPs to alleviate poverty and improve socioeconomic well-being of poor (Awaworyi Churchill et al. 2021; Bhallaet al. 2018; Cahyadi et al. 2019; Del Boca et al. 2021; Habimana et al. 2021; Handa et al. 2012; Hidayatina and Garces-Ozanne 2019; Kilburn et al. 2020; Lawlor et al. 2019; Prencipe et al.2021).

  2. Apart from direct approach, literature also provides an indirect approach to estimate WTPfES using observed use behavior (revealed preferences). Given the nature of study, we use direct approach method based on contingent valuation method (CVM).

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  1. COMSATS University Islamabad, Islamabad, Pakistan

    Saima Nawaz & Fatima Gul

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  1. Saima Nawaz
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  2. Fatima Gul
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All authors contributed equally to this work. Saima Nawaz contributed to the paper by conceptualization study and develo** paper. Fatima Gul collected the data for empirical analysis and performed analysis.

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Correspondence to Saima Nawaz.

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Fig. 7
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Theoretical framework to link CTP and ES.

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Nawaz, S., Gul, F. Cash transfer program and willingness to pay for environmental services among the ultra-poor in Pakistan. Environ Sci Pollut Res 29, 30249–30264 (2022). https://doi.org/10.1007/s11356-021-17922-4

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