Welcome to Research Insights, where we put the focus on the Department of Economics' research output, events and conferences.
Each month, we sit down with a member of our department to learn more about a published paper, or a recent event or conference they have attended.
This month, we spoke to Professor Tara Mitchell and Professor Carol Newman. Their paper "Group Incentives for the Public Good: A Field Experiment on Improving the Urban Environment" was published in the November issue of the World Bank Economic Review. It is co-written with Chloe Fernandez (World Bank) and Marcus Holmlund (World Bank).
"Group Incentives for the Public Good: A Field Experiment on Improving the Urban Environment"
Professors Tara Mitchell and Carol Newman
The World Bank Economic Review | November 2024
Abstract: What strategies can help communities to overcome the public goods problem in the maintenance of communal spaces and infrastructure in urban environments? This paper investigates whether an intervention targeted at Community-Based Organizations can motivate them to make increased contributions to the public good, thereby improving outcomes for the community as a whole. Using a randomized controlled trial conducted in Dakar, Senegal, the analysis tests the effectiveness of a program that provides incentives to community groups to encourage them to keep their neighborhoods clean, with the ultimate goal of reducing flooding. After one year, the intervention proved to be effective in engaging communities, improving cleanliness, and reducing flooding.
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Professor Tara Mitchell
Professor Tara Mitchell is an Assistant Professor at the Department of Economics. She is also a consultant for the World Bank and a founding member of the Trinity Impact Evaluation Unit (TIME). Her research area is development economics, focusing on questions related to applied microeconomics.
Professor Carol Newman
Professor Carol Newman is a Professor of Economics, as well as a co-founder of TIME and a consultant to the World Bank. Her research explores both household and enterprise behaviour with a particular focus on developing countries.
Can you explain what this paper is about for anyone unfamiliar with the abstract?
This paper is about incentivising local communities to contribute to the public good. The setting is two low-income areas of Dakar, Senegal, which are highly prone to flooding. While major investments in new drainage infrastructure have been made in Dakar in recent years, this infrastructure has historically suffered from a lack of maintenance and misuse, including the dumping of household waste. This is a classic example of a public goods problem. The benefit of properly functioning infrastructure is shared by everyone. While each individual’s contribution to maintaining the infrastructure is small, they may be unwilling to contribute their share unless they believe that others will do the same. We designed an intervention called “Operation Clean Neighbourhood” which targeted established community-based organisations and encouraged them, through social recognition and low-value in-kind incentives, to work toward keeping their neighbourhoods clean. We evaluated the programme using a randomised controlled trial and found that after one year, the intervention proved to be effective in engaging communities, improving cleanliness, and reducing flooding.
Why did you decide to write this paper?
Climate change disproportionately impacts the poorest regions of the world. One of the consequences of climate change is increased flooding, particularly in urban areas. Globally, flooding affects approximately 250 million people and causes 40 billion US dollars of damage each year. These effects are predicted to worsen in the coming years. Climate-resilient infrastructure can play a role in adaptation and mitigation strategies but will require significant levels of public investment. While investment in infrastructure in low- and middle-income countries is growing the adequacy, quality, operations and maintenance of that infrastructure is insufficient. One of the key issues is that it presents a local public-goods problem, and so consideration must be given to the actions of local communities. Developing strategies to encourage communities to make contributions to this public good is essential for the effective functioning of the infrastructure and the sustainability of public infrastructure investments over the longer term. Understanding what strategies might work was our main motivation for writing this paper.
How do you see this research making a difference in the real world?
There are a number of findings from this study that can make a difference in the real world. First, a relatively light touch and inexpensive policy intervention such as this can be effective at encouraging behavioural change, even in an urban setting. Second, it is possible to achieve this change at the community level by targeting Community-Based Organisations. These organisations are highly visible within the community and have existing social capital and influence. They were able to work together to overcome the public goods problem and this had benefits for the entire community. Third, we show that an incentivised community engagement programme resulted in a meaningful reduction in the experience of flooding. As cities in the developing world continue to grow very rapidly, government agencies may find it difficult to adapt and put in place the necessary infrastructure and supports as quickly as needed. It is therefore very important to understand how these urban communities can work together to overcome these public goods problems and maintain their environment.
November 2024