Behavioral Adaptation to Improved Environmental Quality: Evidence from a Sanitation Intervention

39 Pages Posted: 11 Nov 2024

See all articles by Lisa A. Cameron

Lisa A. Cameron

University of Melbourne - Melbourne Institute: Applied Economic & Social Research; IZA Institute of Labor Economics; J-PAL

An Huang

Monash University

Paulo Santos

Monash University

Milan Thomas

Asian Development Bank

Date Written: November 11, 2024

Abstract

This paper investigates behavioral adaptation to local improvements in environmental quality. Using exogenous variation in village sanitation coverage generated by the randomized allocation of financial incentives to latrine construction in the Lao People’s Democratic Republic, we find that the generalized adoption of improved sanitation led to significant reductions in the practice of boiling water for drinking. Our analysis suggests that this change is likely a behavioral response to a reduction in the health benefits associated with treating water, which decline and eventually become negligible as local adoption of improved sanitation increases. Estimates of the value of time savings associated with the reduction in water boiling suggest that this adaptation is an additional important benefit of sanitation investments, most of which likely accrues to girls and women.

Keywords: WASH, water boiling, height-for-age, firewood collection

JEL Classification: I12, O15, Q50

Suggested Citation

Cameron, Lisa A. and Huang, An and Santos, Paulo and Thomas, Milan, Behavioral Adaptation to Improved Environmental Quality: Evidence from a Sanitation Intervention (November 11, 2024). ADB Economics Working Paper Series No. 751, Melbourne Institute Working Paper Forthcoming, Available at SSRN: https://ssrn.com/abstract=5016166 or http://dx.doi.org/10.2139/ssrn.5016166

Lisa A. Cameron (Contact Author)

University of Melbourne - Melbourne Institute: Applied Economic & Social Research ( email )

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Parkville, Victoria 3010
Australia

IZA Institute of Labor Economics ( email )

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Germany

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J-PAL ( email )

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HOME PAGE: http://www.povertyactionlab.org/cameron

An Huang

Monash University ( email )

Paulo Santos

Monash University ( email )

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Wellington Road
Clayton, Victoria 3800
Australia

Milan Thomas

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

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