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Do Not Trash the Incentive! Monetary Incentives and Waste Sorting

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  • Alessandro Bucciol
  • Natalia Montinari
  • Marco Piovesan

Abstract

In this paper, we examine whether combining non-monetary and monetary incentives increases municipal solid waste sorting. We empirically investigate this issue, exploiting the exogenous variation in waste management policies experienced during the years 1999–2008 by the 95 municipalities in the district of Treviso (Italy). Using a panel regression analysis, we estimate that pay-as-you-throw (PAYT) incentive schemes increase the sorted-to-total waste ratio by 17 percent, and that their effect reinforces that of a door-to-door (DtD) collection system, which is equal to 15.7 percent. Moreover, the panel structure of our dataset allows us to find learning and spatial effects associated with both PAYT and DtD.

Suggested Citation

  • Alessandro Bucciol & Natalia Montinari & Marco Piovesan, 2015. "Do Not Trash the Incentive! Monetary Incentives and Waste Sorting," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(4), pages 1204-1229, October.
    • Handle: RePEc:bla:scandj:v:117:y:2015:i:4:p:1204-1229
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    1. James D. Reschovsky & Sarah E. Stone, 1994. "Market incentives to encourage household waste recycling: Paying for what you throw away," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 13(1), pages 120-139.
    2. Maarten A. Allers & Corine Hoeben, 2010. "Effects of Unit-Based Garbage Pricing: A Differences-in-Differences Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(3), pages 405-428, March.
    3. Paul Missios & Ida Ferrara, 2011. "A Cross-Country Study of Waste Prevention and Recycling," Working Papers 028, Ryerson University, Department of Economics.
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    More about this item

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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