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Explaining environmental health behaviors: evidence from rural India on the influence of discount rates

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  • Atmadja, Stibniati S.
  • Sills, Erin O.
  • Pattanayak, Subhrendu K.
  • Yang, Jui-Chen
  • Patil, Sumeet

Abstract

The authors examine whether high personal discount rates help explain why and which households in developing countries under-invest in seemingly low-cost options to avert environmental health threats, including bednets, clean cooking fuels, individual household latrines, water treatment and handwashing. First, the authors elicit personal discount rates by combining a simple randomized experiment with detailed surveys of over 10,000 rural households in Maharashtra, India. Personal discount rates are lower for women, for better-off households, and for households who can access formal credit. Secondly, they show that the discount rate is negatively related to a suite of behaviors that mitigate environmental health threats, from very low-cost steps like washing hands to more significant investments like household latrines, even after controlling for socio-economic status, access to credit, public infrastructure and services, and relevant beliefs.

Suggested Citation

  • Atmadja, Stibniati S. & Sills, Erin O. & Pattanayak, Subhrendu K. & Yang, Jui-Chen & Patil, Sumeet, 2017. "Explaining environmental health behaviors: evidence from rural India on the influence of discount rates," Environment and Development Economics, Cambridge University Press, vol. 22(3), pages 229-248, June.
    • Handle: RePEc:cup:endeec:v:22:y:2017:i:03:p:229-248_00
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    Cited by:

    1. Jichun Zhao & Hongbiao Wang & Jianxin Guo, 2021. "Smog Avoidance Investment While Improving Air Quality: Health Demand or Risk Aversion? Evidence from Cities in China," IJERPH, MDPI, vol. 18(15), pages 1-21, July.
    2. Sawosri, Arieska Wening & Mußhoff, Oliver, 2020. "Risk and time preferences of farmers in India and Indonesia," EFForTS Discussion Paper Series 32, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    3. Talevi, Marta & Pattanayak, Subhrendu K. & Das, Ipsita & Lewis, Jessica J. & Singha, Ashok K., 2022. "Speaking from experience: Preferences for cooking with biogas in rural India," Energy Economics, Elsevier, vol. 107(C).
    4. Vania Vigolo & Rezarta Sallaku & Federico Testa, 2018. "Drivers and Barriers to Clean Cooking: A Systematic Literature Review from a Consumer Behavior Perspective," Sustainability, MDPI, vol. 10(11), pages 1-21, November.
    5. Mann, Konstantin A., 2018. "Time preference and savoring – how to exploit the Loewenstein contradiction," MPRA Paper 84500, University Library of Munich, Germany.

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