This lever is about increasing or decreasing real or perceived costs and benefits, in the broadest sense (that is, what we give up or gain for a given choice, e.g., money, time, or effort). In more theoretical terms, the use of material or financial incentives comes from early economic and rational actor theories such as utility maximization about how people make choices and develop preferences to further their interests. Specifically, these models tell us that most of our preferences are guided by the real (or perceived) value of our choices, and so changes to this would in turn lead to changes in behavior. In reality, preferences rely on much more than material incentives alone, but the attractiveness of a choice relative to others plays an important part in our decision-making. Choices are typically more attractive if they come at lower costs (e.g. lower price, or less effort) and with greater benefits . Material incentives were some of the first strategies recommended for behavior change, and while the “economic case” for a decision continues to be relevant, in many contexts this will not be sufficient to induce large-scale behavior change.
Make sure you start developing the theory of change with the desired behavior change in mind. Then, when writing a psycho-social state intermediate result using Tempt Me you might use words like:
Actors believe the desired behavior is easy and convenient
Actors believe there is a benefit to the desired behavior
Actors believe there is a high cost to the undesired behavior
Type A. Give rewards or penalties
In partnership with local hotels, the NGO ARCAS introduced a community engagement scheme that sought to encourage the sustainable harvesting of turtle eggs in Guatemala (Muccio, 2015). Though the scheme bans egg collection for most turtle species, it explicitly allows for the harvest of Olive Ridley turtles, if egg collectors donate at least 20% of the harvested eggs to hatcheries. The number of eggs rescued nationally increased from 60,000 in 2003 to 270,000 in 2015, doubling the number of turtles nesting on Playa Hawaii, Santa Rosa beaches.
Impounding or seizing vehicles is one of the most effective ways to stop illegal solid waste dumping (Du et al, 2021).
Policymakers have found that providing benefits to electric vehicle (EV) drivers could encourage adoption: incentives like bus or transit lane access, toll-free parking or road access, as well as improving EV-relevant infrastructure all contribute to higher EV adoption rates (Hardman, 2019).
Type B. Make the behavior easy or the alternative hard
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An experiment in dining halls at a United States university showed that removing trays led to less food waste, as it took more effort to carry multiple plates and glasses (Rajbhandari-Thapa et al, 2018).
➡️ perceive a behavior as more effort than the outcome is worth
➡️ motivations around the current or desired behaviors are primarily tied to their perceptions of costs, time, or effort
➡️ future behavior is likely to be discouraged by fines, particularly when that fine makes the behavior either financially or materially prohibitive
➡️ face costs or benefits that are consistent for engaging in a given behavior
Norm Me (Social Influences) by offering financial or symbolic incentives where rewards are based on group performance. Additionally, the person or group providing the incentive may have an impact on how it is received.
Cue Me (Choice Architecture) by harnessing loss aversion by taking away or discontinuing payments with non-compliance. Offering incentives at a timely moment close to doing the behavior can also boost adoption.
Sway Me (Emotional Appeals) by using tailored language from key messengers and considering how you frame the incentive (e.g., “compensation” vs. “payments”).
Incentives can drain limited resources, so explore different types of “rewards”, payment schedules, or program budget accommodations over the length of the intervention.
Material incentives can “crowd out” or “crowd in” internal or social motivations for doing a behavior, depending on the context
Rewarding good behavior can also build expectations that these rewards will be ongoing and may need to increase over time for the same effect.
Cover Image by Rare.
Guidance for Theory of Change Image by Rare.