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Do not Trash the Incentive! Monetary incentives and waste sorting

Author

Listed:
  • 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.

Suggested Citation

  • Alessandro Bucciol & Natalia Montinari & Marco Piovesan, 2011. "Do not Trash the Incentive! Monetary incentives and waste sorting," Jena Economics Research Papers 2011-058, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2011-058
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    References listed on IDEAS

    as
    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, Toronto Metropolitan University, Department of Economics.
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    More about this item

    Keywords

    Incentives; environment; waste management; PAYT;
    All these keywords.

    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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