Can peers increase the voluntary contributions in community driven projects? Evidence from a field experiment

- A community-based electrification project in Kenya organized 30 community mobilization meetings to encourage financial contributions.
- A randomized experiment created 10 “low” meetings (with only low contributors), 10 “high” meetings (with only high contributors), and 10 “mixed” meetings (with both high and low contributors).
- Ex ante low contributors contribute more in “mixed” versus “low” meetings.
- Ex ante high contributors do not contribute less in “mixed” versus “high” meetings.
- Peer effects can increase voluntary contributions to community projects.

This paper explores whether peer effects increased voluntary contributions in a community electrification project in Kenya. The project organized 30 community mobilization meetings to encourage financial contributions. Ten “low” meetings included only low contributors, ten “high” meetings included only high contributors, while ten “mixed” meetings were composed of both high and low contributors. We then followed contributions over one year. Low contributors increased their contribution after mixed versus low meetings. Effects were asymmetric: high contributors did not contribute less following mixed versus high meetings. Organizing mixed meetings was thus a “win-win” for the project. Detailed qualitative observations of meeting attendees suggest that much of the exposure in mixed meetings to peer encouragement, project criticisms, and neutral learning about the project came from high contributors.