Social Capital to Induce a Contribution to Environmental Collective Action in Indonesia: An Experimental Method

Alin Halimatussadiah, Budy Resosudarmo and Diah Widyawati

Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics

Abstract: Social capital is considered to be an important factor in economic development. It is argued that it generates a flow of (economic) benefits through collective action, by reducing free riding and increasing individual contribution. This study examines whether social capital increases individual contribution in a collective action situation. Using a classroom experiment, two games are played in a sequential manner: a trust game to measure level of trust-as a proxy for social capital-and a public goods game to measure individual contribution to collective action. In the public goods game, we apply some treatments to look at the impact of partial disclosure of a group member's behaviour in the trust game on contributions in the public goods game. In general, the result shows that the level of social capital positively impacts individual contribution to collective action. However, we found no significant evidence to support the impact of partial disclosure of a group member's behaviour in the trust game on contributions in the public goods game.

Keywords: Social Capital; Collective Action; Trust Game; Public Goods Game (search for similar items in EconPapers)
JEL-codes: A14 C91 C92 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2014
New Economics Papers: this item is included in nep-cbe, nep-cdm, nep-env, nep-exp, nep-ger, nep-net, nep-sea and nep-soc
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