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Do not Trash the Incentive! Monetary incentives and waste sorting

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Author Info

  • Alessandro Bucciol

    ()
    (University of Verona, University of Amsterdam and Netspar)

  • Natalia Montinari

    ()
    (Max Planck Institute of Economics Jena, Strategic Interaction Group)

  • Marco Piovesan

    ()
    (Harvard Business School)

Abstract

This paper examines whether monetary incentives are an effective tool for increasing domestic waste sorting. We exploit the exogenous variation in the waste management policies experienced during the years 1999-2008 by the 95 municipalities in the district of Treviso (Italy). We estimate with a panel analysis that pay-as-you-throw (PAYT) incentive schemes increase by 12.3% the sorted-total waste ratio. 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. Our data show that household behavior is also influenced by the policies of adjacent municipalities.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2011-058.

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Date of creation: 02 Dec 2011
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Handle: RePEc:jrp:jrpwrp:2011-058

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Keywords: Incentives; environment; waste management; PAYT;

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  1. Paul Missios & Ida Ferrara, 2011. "A Cross-Country Study of Waste Prevention and Recycling," Working Papers 028, Ryerson University, Department of Economics.
  2. 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.
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