Ecol. Econ. 139, 150–157 (2017)

Credit: MELBA PHOTO AGENCY/ALAMY

The Reducing Emissions from Deforestation and Forest Degradation (REDD+) initiative aims to financially reward forest stakeholders who improve their carbon management. One challenge influencing REDD+ effectiveness is the ability to distribute its benefits. Specifically, logistical difficulties — for example, paying participants dispersed over a large landscape — consume time and energy, while organisational costs such as for payment disbursal erode available funds.

Benjamin Thompson, from the National University of Singapore, discusses the importance of 'mobile money' — a payment system whereby money is transferred through cell phones, without the need for a bank account — to help implement REDD+. This approach could simplify the organizational structure, reduce transaction costs, and make the payment system quicker and more transparent. In addition, mobile money could promote female empowerment in social contexts where cultural norms make it more difficult for woman to manage money directly. The growing diffusion of cell phones subscriptions and network coverage in developing nations with relevant REDD+ programs (including China, Cambodia, Tanzania, and the Philippines) makes mobile money an increasingly viable possibility to manage REDD+ payments, boosting the diffusion of forest restoration programs.