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Social Interaction and Public Goods Provision: A Case of Waste Management in Bandung, Indonesia

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  • Martin Daniel Siyaranamual

    ()
    (Department of Economics, Padjadjaran University)

Abstract

Successful 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.

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File URL: http://lp3e.fe.unpad.ac.id/wopeds/201312.pdf
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Bibliographic Info

Paper provided by Department of Economics, Padjadjaran University in its series Working Papers in Economics and Development Studies (WoPEDS) with number 201312.

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Length: 33 pages
Date of creation: May 2013
Date of revision: May 2013
Handle: RePEc:unp:wpaper:201312

Contact details of provider:
Postal: Jalan Cimandiri No.6, Bandung 40115
Phone: (062)022-4204510
Fax: (062)022-4204510
Email:
Web page: http://ceds.fe.unpad.ac.id
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Keywords: Social interactions; Contingent valuation; Bandung; Solid waste manage-ment;

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References

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Cited by:
  1. Alin Halimatussadiah & Budy P. Resosudarmo & Diah Widyawati, 2014. "Social Capital to Induce a Contribution to Environmental Collective Action in Indonesia: An Experimental Method," Departmental Working Papers, The Australian National University, Arndt-Corden Department of Economics 2014-03, The Australian National University, Arndt-Corden Department of Economics.

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