Labelled loans and sanitation investments
New published paper by Britta Augsburg, Bet Caeyers, Sara Giunti, Bansi Malde and Susanna Smets in Ideas For India - for more evidence-based policy, titled "Labelled loans and sanitation investments".
Rural Indian households report lack of affordability as the main reason for not having a toilet. This article investigates – through an experiment in rural Maharashtra – whether microcredit labelled for sanitation can increase sanitation investments. It finds that targeted households demand the sanitation loans, and toilet uptake increases by 9 percentage points; however, roughly half of the loans were not used for sanitation.