This paper addresses the relationship between equity and efficiency in PES schemes from a conceptual point of view. Emphasis is placed on the role of the institutional setting, social perceptions about economic fairness (or distributive justice of the payments), uncertainty and interactions...

Full instrumental rationality and perfect institutions are two cornerstone assumptions underlying neoclassical models. However, in the real world, these two assumptions never hold, especially not in developing countries. In this paper, we develop a game theoretical model to investigate if...