Abstract

This article examines the use of output-based aid and payment for environmental services to reduce water pollution in Brazil. Two nationwide initiatives are reviewed. First, the output-based aid concept of the River Basin Clean-up Programme (PRODES) to tackle the problem of sanitation deficit in urban areas is presented. Second, the payment for environmental services scheme supported by Brazil’s National Water Agency (ANA) through the Water Producer Programme to promote water conservation on rural properties is discussed. Both programmes are evaluated not only as financing mechanisms for water conservation but also as strategies for implementing Brazil’s water policy.

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