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To use financial incentives or not? Insights from experiments in encouraging sanitation investments in four countries

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  • Gautam, Sanghmitra
  • Gechter, Michael
  • Guiteras, Raymond P.
  • Mobarak, Ahmed Mushfiq

Abstract

We conduct a systematic re-analysis of intervention-based studies that promote hygienic latrines and evaluate via experimental methods. We impose systematic inclusion criteria to identify such studies and compile their microdata to harmonize outcome measures, covariates, and estimands across studies. We then re-analyze their data to report metrics that are consistently defined and measured across studies. We compare the relative effectiveness of different classes of interventions implemented in overlapping ways across four countries: community-level demand encouragement, sanitation subsidies, product information campaigns, and microcredit to finance product purchases. In the sample of studies meeting our inclusion criteria, interventions that offer financial benefits generally outperform information and education campaigns in increasing adoption of improved sanitation. Contrary to a policy concern about sustainability, financial incentives do not undermine usage of adopted latrines. Effects vary by share of women in the household, in both positive and negative directions, and differ little by poverty status.

Suggested Citation

  • Gautam, Sanghmitra & Gechter, Michael & Guiteras, Raymond P. & Mobarak, Ahmed Mushfiq, 2025. "To use financial incentives or not? Insights from experiments in encouraging sanitation investments in four countries," World Development, Elsevier, vol. 187(C).
  • Handle: RePEc:eee:wdevel:v:187:y:2025:i:c:s0305750x24002614
    DOI: 10.1016/j.worlddev.2024.106791
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    Keywords

    Sanitation; Impact evaluation;

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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