Policy brief

Learnings from a randomized controlled trial on targeted subsidies

Increasing sanitation uptake among poor households in rural Cambodia

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This study provides evidence for the impact and cost-effectiveness of well-targeted subsidies on latrine uptake among lower-income households in a market-based approach.

It finds uptake rates amoung poor households that were offered subsidies increased by 14 to 16 per cent compared to the control group, while there was no significant effect on non-poor households. Additionally, a cost-effectiveness analysis showed that the the increase in sales and subsequent economies of scale from the targeted subsidy programme resulted in lower per-unit programme cost compared to the cash-only and sanitation finance programme.