Do Environmental Messages Work on the Poor? Experimental Evidence from Brazilian Favelas

Chantal Toledo

Journal of the Association of Environmental and Resource Economists, 2016, vol. 3, issue 1, 37 - 83

Abstract: In developed countries, the combined use of monetary and nonmonetary incentives, such as subsidies and social norms, has been shown to encourage the adoption of energy-saving technologies and conservation behaviors. However, little is known about the effect of these approaches in developing countries, which account for most of the growth in energy demand and greenhouse gas emissions. Using a randomized experiment conducted in 17 favelas (shantytowns) in Rio de Janeiro, Brazil, this paper investigates the interplay between three levels of monetary incentives and an environmental persuasion communication on the take-up of an energy-efficient lightbulb (a light-emitting diode or, LED). On average, the persuasive communication significantly increases LED take-up by 6 percentage points (a 13% increase). This effect is driven by a 13 percentage point (20%) increase in take-up at the middle price. Richer participants and females respond the most to the communication.

Date: 2016
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