Do Not Trash the Incentive! Monetary Incentives and Waste Sorting
AbstractThis paper examines whether monetary incentives are an effective tool for increasing domestic waste sorting. We exploit the exogenous variation in the pricing systems experienced during the 1999-2008 decade by the 95 municipalities in the district of Treviso (Italy). We estimate with a panel analysis that pay-as-you-throw (PAYT) incentive-based schemes increase by 12.2% the ratio of sorted to total waste. This increase reflects a change in the behavior of households, who keep unaltered the production of total waste but sort it to a larger extent. In addition, we show that several factors that may discourage local administrators from adopting PAYT - illegal dumping and higher cost of management - are not important at the aggregate level. Hence, our results support the use of PAYT as an effective tool to increase waste sorting.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Harvard Business School in its series Harvard Business School Working Papers with number 11-093.
Length: 32 pages
Date of creation: Mar 2011
Date of revision:
Incentives; waste management; PAYT.;
Other versions of this item:
- Alessandro Bucciol & Natalia Montinari & Marco Piovesan, 2011. "Do not Trash the Incentive! Monetary incentives and waste sorting," Jena Economic Research Papers 2011-058, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- 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
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul Missios & Ida Ferrara, 2011. "A Cross-Country Study of Waste Prevention and Recycling," Working Papers 028, Ryerson University, Department of Economics.
- Maarten A. Allers & Corine Hoeben, 2010. "Effects of Unit-Based Garbage Pricing: A Differences-in-Differences Approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 45(3), pages 405-428, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Soebagio Notosoehardjo).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.