Networks, Externalities and the Adoption of Improved Sanitation Solutions in Urban Slums
Lead Research Organisation:
University of Warwick
Department Name: Economics
Abstract
The lack of decent sanitation in densely-populated low-income urban settlements in Africa is an important cause of under-5 mortality, through diarrhoeal diseases. Despite significant investments by governments, international donors and NGOs in bringing sanitation to low income communities, the adoption of improved sanitation by low-income households, has remained stubbornly low. Building on a recent but flourishing literature stressing the importance of social networks on influencing individuals' behaviour, this study will address two questions. What is the magnitude and the nature of peer effects on the adoption of a new sanitation technology? Given what we will learn about these effects, how can policy-makers and NGOs design their interventions to maximize take-up?
In order to answer these questions, this study will proceed in two steps. First, we will document how social networks link households in the compound of Chazanga in Lusaka, Zambia. We will also elicit the distribution of willingness-to-pay and, using focus groups, narrow down the dominating explanations that explain low adoption. Second, we will run a randomised controlled trial in which we will distribute discounts and additional information packages in order to increase the take-up probability of randomly selected households in the community. We will then measure how adoption spreads in the social network. We will design our experiment so that we can disentangle two competing hypotheses underlying peer effects: (i) learning (as his connections get equipped, a household learns about the benefits he could experience if he adopted the technology), (ii) social norm (a household might incur a cost in being the only one to use or not to use a new technology). Separating the two explanations will lead to richer policy recommendations, which can in turn improve the cost-effectiveness of future programmes.
In order to answer these questions, this study will proceed in two steps. First, we will document how social networks link households in the compound of Chazanga in Lusaka, Zambia. We will also elicit the distribution of willingness-to-pay and, using focus groups, narrow down the dominating explanations that explain low adoption. Second, we will run a randomised controlled trial in which we will distribute discounts and additional information packages in order to increase the take-up probability of randomly selected households in the community. We will then measure how adoption spreads in the social network. We will design our experiment so that we can disentangle two competing hypotheses underlying peer effects: (i) learning (as his connections get equipped, a household learns about the benefits he could experience if he adopted the technology), (ii) social norm (a household might incur a cost in being the only one to use or not to use a new technology). Separating the two explanations will lead to richer policy recommendations, which can in turn improve the cost-effectiveness of future programmes.
Planned Impact
We anticipate the results of this research will impact non-governmental and governmental organizations, and policy-makers in addition to academics interested in other fields than the ones directly concerned with this study.
1. Policy-makers, local authorities and local utility agencies in Lusaka and other urban areas in Zambia. Their objective is to maximise the number of households who will benefit from improved sanitation solutions while budget constrained. Our results will help them design cost effective ways to spread the adoption of improved sanitation technologies. These results will be of particular importance in the short run as several sanitation projects are currently taking off in Lusaka. While this project is limited to one compound, Chazanga, we expect our results to have external validity for other compounds in Lusaka since they have several similar characteristics. To some extent, they can also be used to guide decision-making in other African countries, since the problem of sanitation in urban areas is acute in almost all cities.
2. Non-governmental organizations operating in the domain of sanitation and funding agencies. These institutions are also concerned by an optimal management of their funds or the funds that they make available. Our results will help NGOs and funding agencies make better choices, so that they can increase the number of households who benefit from their programs (ranging from the installation of pipes in a slum, to subsidies of a given sanitation technology).
3. Business professionals in the industry of housing improvements in low-income areas. Part of this study will measure households' willingness-to-pay for sanitation improvements (which are one particular kind of housing improvement) in low-income urban settlements and how this willingness-to-pay changes with the level of information. These results would be directly useful for business professionals, whose objective is to spread their equipment as much as possible, to understand where are the breaks to demand.
Dissemination will be made easier by the fact that we have contacts with many institutions in Zambia. First, we are working closely with Water and Sanitation for the Urban Poor (WSUP), a non-profit partnership, gathering non-governmental organisations and companies operating in the sector of water and sanitation for the urban poor and with headquarters in London. Second, we have had encouraging conversations with representatives of Lusaka Sewerage and Water Company (the local utility in charge of water and sanitation in Lusaka), the CEO of Toilet Yanga (a company which produces low-cost toilets in Lusaka), the Manager of Chazanga Water Trust (Lusaka Sewerage and Water Companies local office in Chazanga), officials at the Millennium Challenge Account - Zambia (a local office managing a $355 million compact with the MCA to improve water and sanitation in Lusaka) and the Deputy Director of Housing at Lusaka City Council (who is working to improve tenure security and living conditions for low income residents living in informal settlements in Lusaka).
to disseminate the results of our research, we plan to organise two events. The first one, based in Lusaka, would gather local stakeholders interested in sanitation: (i) policy makers and public agencies (including Government, City Council, Lusaka Water, Water Trusts), (ii) businesses (Toilet Yanga and other companies producing sanitation solutions, retailers), (iii) local representatives of international donors and non-governmental organisations (WSUP, MCA-Z, IPA, among other interested NGOs). The second one, based in London, would gather international organisations (WSUP), governmental agencies (such as DFID), and the press.
We will also maintain an online presence, via a webpage hosted at the University of Warwick, J-PAL and IPA, which will be frequently updated and will provide information about the project that can be read by a wide audience.
1. Policy-makers, local authorities and local utility agencies in Lusaka and other urban areas in Zambia. Their objective is to maximise the number of households who will benefit from improved sanitation solutions while budget constrained. Our results will help them design cost effective ways to spread the adoption of improved sanitation technologies. These results will be of particular importance in the short run as several sanitation projects are currently taking off in Lusaka. While this project is limited to one compound, Chazanga, we expect our results to have external validity for other compounds in Lusaka since they have several similar characteristics. To some extent, they can also be used to guide decision-making in other African countries, since the problem of sanitation in urban areas is acute in almost all cities.
2. Non-governmental organizations operating in the domain of sanitation and funding agencies. These institutions are also concerned by an optimal management of their funds or the funds that they make available. Our results will help NGOs and funding agencies make better choices, so that they can increase the number of households who benefit from their programs (ranging from the installation of pipes in a slum, to subsidies of a given sanitation technology).
3. Business professionals in the industry of housing improvements in low-income areas. Part of this study will measure households' willingness-to-pay for sanitation improvements (which are one particular kind of housing improvement) in low-income urban settlements and how this willingness-to-pay changes with the level of information. These results would be directly useful for business professionals, whose objective is to spread their equipment as much as possible, to understand where are the breaks to demand.
Dissemination will be made easier by the fact that we have contacts with many institutions in Zambia. First, we are working closely with Water and Sanitation for the Urban Poor (WSUP), a non-profit partnership, gathering non-governmental organisations and companies operating in the sector of water and sanitation for the urban poor and with headquarters in London. Second, we have had encouraging conversations with representatives of Lusaka Sewerage and Water Company (the local utility in charge of water and sanitation in Lusaka), the CEO of Toilet Yanga (a company which produces low-cost toilets in Lusaka), the Manager of Chazanga Water Trust (Lusaka Sewerage and Water Companies local office in Chazanga), officials at the Millennium Challenge Account - Zambia (a local office managing a $355 million compact with the MCA to improve water and sanitation in Lusaka) and the Deputy Director of Housing at Lusaka City Council (who is working to improve tenure security and living conditions for low income residents living in informal settlements in Lusaka).
to disseminate the results of our research, we plan to organise two events. The first one, based in Lusaka, would gather local stakeholders interested in sanitation: (i) policy makers and public agencies (including Government, City Council, Lusaka Water, Water Trusts), (ii) businesses (Toilet Yanga and other companies producing sanitation solutions, retailers), (iii) local representatives of international donors and non-governmental organisations (WSUP, MCA-Z, IPA, among other interested NGOs). The second one, based in London, would gather international organisations (WSUP), governmental agencies (such as DFID), and the press.
We will also maintain an online presence, via a webpage hosted at the University of Warwick, J-PAL and IPA, which will be frequently updated and will provide information about the project that can be read by a wide audience.