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The Effects of a Green Nudge on Municipal Solid Waste: Evidence from a Clear Bag Policy

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  • Akbulut-Yuksel, Mevlude

    (Dalhousie University)

  • Boulatoff, Catherine

    (Dalhousie University)

Abstract

We explore the power of behavioral economic insights to influence the level of households' recycling and Municipal Solid Waste (MSW) by examining the effectiveness of a green nudge, the adoption of a Clear Bag Policy that was implemented in 2015 in a mid-size urban municipality in Canada. Using a Regression Discontinuity (RD) Design on universe administrative data, our analysis shows that this green nudge promoted recycling, and reduced both refuse and total MSW. While recycling increased by 15 percent, total MSW decreased by 27 percent overall between August 2015 and July 2017. Our results also demonstrate heterogeneity in response to a Clear Bag Policy across neighborhoods with varying socioeconomic indicators. Our findings suggest that green nudges can serve as effective policy instruments in devising future environment policies.

Suggested Citation

  • Akbulut-Yuksel, Mevlude & Boulatoff, Catherine, 2020. "The Effects of a Green Nudge on Municipal Solid Waste: Evidence from a Clear Bag Policy," IZA Discussion Papers 13925, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13925
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    Cited by:

    1. Ishimura, Yuichi, 2022. "The effects of the containers and packaging recycling law on the domestic recycling of plastic waste: Evidence from Japan," Ecological Economics, Elsevier, vol. 201(C).
    2. Klaus Eisenack, 2023. "Why local governments set climate targets: Effects of city size and political costs," Berlin School of Economics Discussion Papers 0029, Berlin School of Economics.
    3. Lin, Wen & Nayga, Rodolfo M., 2022. "Green identity labeling, environmental information, and pro-environmental food choices," Food Policy, Elsevier, vol. 106(C).
    4. Hui Feng & Yirong Li & Renyan Mu & Lei Wu, 2023. "The Impact of Investment Efficiency in the Digital Economy on Urban Waste Reduction: Evidence from China," Sustainability, MDPI, vol. 15(24), pages 1-15, December.

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    More about this item

    Keywords

    Municipal Solid Waste (MSW); green nudge; environmental policy; regression discontinuity design; ArcGIS;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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