In this interview, World Bank environmental economist Stefano Pagiola discusses his role in the development of payment for environmental services (PES) programs in Costa Rica and Mexico. He begins by discussing the World Bank's role in improving payment and service targeting in Mexican and Costa Rican PES programs based on environmental/biodiversity and cost-effectiveness economic analyses. He then describes technical challenges faced in the implementation of Costa Rica's PES program, and similar challenges due to up-scaling the program for Mexico. Next, Pagiola outlines the political challenges PES faced in both countries and how the programs were re-shaped to better attract political support. Finally, he discusses difficulties in formulating an impact evaluation for these PES programs, and how they have been received in implementing countries in Latin America. 

In this interview, Torres explains the conception of Mexico’s Payment for Environmental Services (PES) program, the process of its expansion and its role in relationship to other federal environmental programs. He describes the implementation of pilot projects based upon similarly designed programs in Costa Rica, and the involvement of such organizations like the World Bank in the program’s funding. He talks about the importance of creating technical committees that provided means for discussing the program’s criteria for preventing deforestation. He addresses the operational challenges that he faced as director general of the National Forest Service of Mexico/Comision Nacional Forestal (CONAFOR) that was in charge of PES, including the implementation of matching-funds and price differentiation programs. Finally, he reflects on CONAFOR’s main goals in relation to PES and the sustainability of the program.