Research in developing countries
Nudging adoption of electric vehicles: Evidence from an information-based intervention in Nepal
Addressing hazardous levels of air pollution in densely populated cities in emerging countries requires concerted efforts to reduce fossil fuel use in the transport sector, such as through greater use of electric motorcycles. However, their adoption has been limited due to several market failures and behavioral anomalies. In this study, we collect novel data on more than 2,000 potential motorcycle buyers in Kathmandu, Nepal. Using randomization, we evaluate the effects of informational nudges on their stated choice to buy an electric motorcycle. We find evidence to suggest that our interventions play a role in determining the stated preference of respondents. Furthermore, results also hint at the importance of gender, health status and education in determining the effectiveness of these nudges. Implications of this study relate to policy choice in cities in developing countries, where fuel-inefficient vehicles are used widely, and the negative externalities due to air pollution are stark.
Researchers: Nilkanth Kumar, Suchita Srinivasan, Massimo Filippini
Publication: external pageJournalcall_made
Energy-related financial literacy and bounded rationality in appliance replacement attitudes: Evidence from Nepal
As countries develop, they are likely to face challenges in meeting growing energy demand and in ensuring energy security. Given this, and the problem of climate change, improving demand-side energy efficiency is pivotal to ensuring sustainable development. However, agents often underinvest in energy-efficient technologies due to behavioral failures such as low levels of energy-related financial literacy, defined as the combination of energy knowledge and cognitive abilities needed to evaluate the lifetime costs of durables. Using novel data, we analyze the levels and determinants of energy-related financial literacy of households in urban areas in the eastern lowlands of Nepal, and whether it is correlated with their attitudes towards replacement of energy-inefficient appliances. We find that respondents have low levels of energy-related financial literacy, and higher levels of literacy are associated with more rational attitudes towards appliance replacement. The findings of this study are relevant to addressing the energy-efficiency gap in developing countries.
Researchers: Nilkanth Kumar, Suchita Srinivasan, Massimo Filippini
Publication: external pageJournalcall_made | DownloadPDF (postprint) (PDF, 735 KB)vertical_align_bottom
Impact of religious participation, social interactions and globalisation on meat consumption
From both health and environmental policy perspectives, it is advisable to ensure that individuals maximise the nutritional gains from eating meat, without having a significantly adverse environmental impact, i.e. sustainable meat consumption pathways are imperative. This is especially true for developing countries, where rising incomes and growing populations have meant that meat consumption has also risen. India is an example of a country where a large share of the population has been vegetarian due to religious and cultural factors, although this is rapidly changing. In this paper, we hypothesise that social interactions and globalisation are two factors that explain this shift in consumption behaviour, especially amongst Hindu households.
These hypotheses are based on the theoretical findings of Levy and Razin (2012). The empirical results show that Hindus that are members of religious groups are less likely to eat meat than non-member Hindus, whereas Hindus that are members of non-religious types of groups are more likely to eat meat than non-members. We also find that Hindu households that frequently use sources of media such as newspapers, the radio or television are more likely to consume meat compared to Hindus that do not. This paper provides important policy implications, both in terms of the formulation of Nationally Recommended Diets in developing countries, and in terms of identifying the channel of influence of both social networks and globalisation on social and religious norms, consumption behaviour, and ultimately, on climate change.
Reserachers: Suchita Srinivasan, Massimo Filippini
Publication: external pageJournalcall_made | external pageWorking papercall_made
Investments in worker health and production: Evidence from Vietnam
In manufacturing industries, occupational health and safety measures ensure better working conditions for employees, which may influence their productivity. We study the impact of investments undertaken by small and medium enterprises in Vietnam in mitigating indoor pollution (including air quality improvements, heat and noise protection as well as lighting) on firm-level gross output and value added. We find that the amount invested by the firm in health has a significant positive effect on both outcomes. Given historically poor working conditions in Vietnam, policy implications relate to incentivizing and enabling firms to undertake such investments, on both moral and economic grounds.
Researchers: Suchita Srinivasan, Massimo Filippini
Publication: external pageJournalcall_made
Adoption of environmental standards and a lack of awareness: evidence from the food and beverage industry in Vietnam
Voluntary approaches to environmental policy can contribute to stemming environmental degradation in developing countries with weak institutions. We evaluate the role of a lack of awareness of a law in explaining the voluntary adoption of environmental certification by small and medium enterprises (SMEs) in the food and beverage industry in Vietnam. We find that firms, where owners or managers were unaware of the law were 38 percentage points less likely to receive environmental certification. Moreover, this effect is larger for firms that exported, had internet access or paid bribes, and it is weaker for household enterprises. Our results suggest that increasing legal awareness can weaken informational constraints for SMEs, where weak institutions and a lack of information often hamper the uptake of environmental policy initiatives.
Researchers: Suchita Srinivasan, Massimo Filippini
Publication: external pageJournalcall_made