Participants in payments for ecosystem services (PES) schemes can be identified in numerous ways, for example, through social or spatial targeting. However, little is known about how the type of participant targeting will influence the PES outcomes. Using a longstanding PES scheme in Cidanau Indonesia, we evaluate the outcomes of using social and spatial participant identification. The outcomes compared are participant perceptions of equity, understanding, and compliance. This scheme contracts farmers at the group level and has had two implementation phases, the first contracted farmers based on social relationships and the second based on spatial proximity of their plots to reduce monitoring costs. We find that both the social and spatial targeting of participants is perceived as fair, and all participants are complying. Our results thus suggest that the perceived trade-off between efficiency and equity is not ubiquitous and that efficiency gains were made without compromising compliance and perceived equity. We also find that training for the farmer group (FG) leaders is crucial in ensuring that the rest of the FG members understand the PES scheme and its requirements.
K E Y W O R D Sefficiency, equity, Indonesia, participation, payments for ecosystem services