Market mechanism or subsidy in disguise? Governing payment for environmental services in Costa Rica

► We analyze correspondence between theory and practice in Costa Rica's PES program. ► We find that the program is framed as a neoliberal, market-based conservation mechanism. ► Yet the program's implementation involves state intervention contrary to neoliberal principles. ► We conclude that failure to create markets has forced the state to intervene to support the program. ► We call for further research to explore similar gaps between vision and execution in PES governance.