Social Interaction and Public Goods Provision: A Case of Waste Management in Bandung, Indonesia
AbstractSuccessful minimisation of the gap between hypothetical and actual be-haviours requires to consider the dimension of individual social interaction in the decision process. While this dimension has been acknowledged to play an important role in the construction of private good preferences, however, in the context of public good, the role of social interaction has not been adequately examined. Therefore, to shed a light on the role of social interaction in shaping preferences toward public good, I conduct a contingent valuation (CV) study in which the respondents are enabled to have social interactions prior their willingness to pay (WTP) elicitation question. And in order to do this, I construct a sampling design where respondents are divided into three different groups, namely treated, untreated, and control groups. The respondents in the treated and untreated groups were allowed to interact/discuss with each other, within and across groups, prior to the WTP elicitation question. I find that treated and untreated respon-dents with social interactions have higher and significant likelihood to purchase the public good relatively to control respondents. While those who did not have interaction have a lower WTP for the improvement of waste management.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, Padjadjaran University in its series Working Papers in Economics and Development Studies (WoPEDS) with number 201312.
Length: 33 pages
Date of creation: May 2013
Date of revision: May 2013
Social interactions; Contingent valuation; Bandung; Solid waste manage-ment;
Find related papers by JEL classification:
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-06-04 (All new papers)
- NEP-EXP-2013-06-04 (Experimental Economics)
- NEP-SEA-2013-06-04 (South East Asia)
- NEP-SOC-2013-06-04 (Social Norms & Social Capital)
- NEP-URE-2013-06-04 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Whittington, Dale & Sur, Dipika & Cook, Joseph & Chatterjee, Susmita & Maskery, Brian & Lahiri, Malay & Poulos, Christine & Boral, Srabani & Nyamete, Andrew & Deen, Jacqueline & Ochiai, Leon & Bhattac, 2009. "Rethinking Cholera and Typhoid Vaccination Policies for the Poor: Private Demand in Kolkata, India," World Development, Elsevier, vol. 37(2), pages 399-409, February.
- Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
- Koukoumelis, Anastasios & Levati, M. Vittoria & Weisser, Johannes, 2012.
"Leading by words: A voluntary contribution experiment with one-way communication,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 81(2), pages 379-390.
- Anastasios Koukoumelis & M. Vittoria Levati & Johannes Weisser, 2009. "Leading by Words: A Voluntary Contribution Experiment With One-Way Communication," Jena Economic Research Papers 2009-106, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Bluffstone, Randall & DeShazo, J.R., 2003. "Upgrading municipal environmental services to European Union levels: a case study of household willingness to pay in Lithuania," Environment and Development Economics, Cambridge University Press, vol. 8(04), pages 637-654, October.
- Gibbard, Allan, 1973. "Manipulation of Voting Schemes: A General Result," Econometrica, Econometric Society, vol. 41(4), pages 587-601, July.
- Jamal Othman, 2003. "Household Preferences for Solid Waste Management in Malaysia," EEPSEA Research Report rr2003054, Economy and Environment Program for Southeast Asia (EEPSEA), revised May 2003.
- Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
- Esther Duflo & Emmanuel Saez, 2002.
"The Role of Information and Social Interactions in Retirement Plan Decisions: Evidence from a Randomized Experiment,"
NBER Working Papers
8885, National Bureau of Economic Research, Inc.
- Esther Duflo & Emmanuel Saez, 2003. "The Role Of Information And Social Interactions In Retirement Plan Decisions: Evidence From A Randomized Experiment," The Quarterly Journal of Economics, MIT Press, vol. 118(3), pages 815-842, August.
- Islam, Ziaul & Maskery, Brian & Nyamete, Andrew & Horowitz, Mark S. & Yunus, Mohammad & Whittington, Dale, 2008. "Private demand for cholera vaccines in rural Matlab, Bangladesh," Health Policy, Elsevier, vol. 85(2), pages 184-195, February.
- Anastasios Koukoumelis & M. Vittoria Levati & Johannes Weisser, 2010. "A voluntary contribution experiment with one-way communication and income heterogeneity," Jena Economic Research Papers 2010-094, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Isaac, R Mark & Walker, James M, 1988. "Communication and Free-Riding Behavior: The Voluntary Contribution Mechanism," Economic Inquiry, Western Economic Association International, vol. 26(4), pages 585-608, October.
- John Crooker & Joseph Herriges, 2004. "Parametric and Semi-Nonparametric Estimation of Willingness-to-Pay in the Dichotomous Choice Contingent Valuation Framework," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 27(4), pages 451-480, April.
- Whittington, Dale & Lauria, Donald T. & Choe, Kyeongae & Hughes, Jeffrey A. & Swarna, Venkateswarlu & Wright, Albert M., 1993. "Household sanitation in Kumasi, Ghana: A description of current practices, attitudes, and perceptions," World Development, Elsevier, vol. 21(5), pages 733-748, May.
- Cason, Timothy N. & Khan, Feisal U., 1999. "A laboratory study of voluntary public goods provision with imperfect monitoring and communication," Journal of Development Economics, Elsevier, vol. 58(2), pages 533-552, April.
- Satterthwaite, Mark Allen, 1975. "Strategy-proofness and Arrow's conditions: Existence and correspondence theorems for voting procedures and social welfare functions," Journal of Economic Theory, Elsevier, vol. 10(2), pages 187-217, April.
- Esther Dufluo & Emmanuel Saez, 2003. "The role of information and social interactions in retirement plan decisions: Evidence from a randomized experiment," Framed Field Experiments 00141, The Field Experiments Website.
- Joseph Cook, 2007. "Reliability Of Stated Preferences For Cholera And Typhoid Vaccines With Time To Think In Hue, Vietnam," EEPSEA Special and Technical Paper sp200701s1, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jan 2007.
- Altaf, Mir Anjum & Deshazo, J. R., 1996. "Household demand for improved solid waste management: A case study of Gujranwala, Pakistan," World Development, Elsevier, vol. 24(5), pages 857-868, May.
- Lawrence Katz & B. Jeffrey Liebman, 2000.
"Moving to Opportunity in Boston: Early Results of a Randomized Mobility Experiment,"
820, Princeton University, Department of Economics, Industrial Relations Section..
- Lawrence F. Katz & Jeffrey R. Kling & Jeffrey B. Liebman, 2001. "Moving To Opportunity In Boston: Early Results Of A Randomized Mobility Experiment," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 607-654, May.
- Lawrence F. Katz & Jeffrey R. Kling & Jeffrey B. Liebman, 2000. "Moving to Opportunity in Boston: Early Results of a Randomized Mobility Experiment," NBER Working Papers 7973, National Bureau of Economic Research, Inc.
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
- Hyacinth Ichoku & William Fonta & Abbi Kedir, 2009. "Measuring individuals’ valuation distributions using a stochastic payment card approach: application to solid waste management in Nigeria," Environment, Development and Sustainability, Springer, vol. 11(3), pages 509-521, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Arief Anshory Yusuf).
If references are entirely missing, you can add them using this form.