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Social Capital to Induce a Contribution to Environmental Collective Action in Indonesia: An Experimental Method

  • Alin Halimatussadiah
  • Budy P. Resosudarmo
  • Diah Widyawati

Social capital is considered to be an important factor in economic development. It is argued that it generates a flow of (economic) benefits through collective action, by reducing free riding and increasing individual contribution. This study examines whether social capital increases individual contribution in a collective action situation. Using a classroom experiment, two games are played in a sequential manner: a trust game to measure level of trust-as a proxy for social capital-and a public goods game to measure individual contribution to collective action. In the public goods game, we apply some treatments to look at the impact of partial disclosure of a group member's behaviour in the trust game on contributions in the public goods game. In general, the result shows that the level of social capital positively impacts individual contribution to collective action. However, we found no significant evidence to support the impact of partial disclosure of a group member's behaviour in the trust game on contributions in the public goods game.

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File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2014/wp_econ_2014_03.pdf
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Paper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2014-03.

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Length: 40 pages
Date of creation: 2014
Date of revision:
Handle: RePEc:pas:papers:2014-03
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  18. Jeffrey P. Carpenter & Amrita G. Daniere & Lois M. Takahashi, 2006. "Space, Trust, And Communal Action: Results From Field Experiments In Southeast Asia," Journal of Regional Science, Wiley Blackwell, vol. 46(4), pages 681-705.
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