Study • Environment · Waste Management
Can Small Incentives Have Large Effects? the Impact of Taxes Versus Bonuses on Disposable Bag Use.
Homonoff (2012) 'Can Small Incentives Have Large Effects? The Impact of Taxes versus Bonuses on Disposable Bag Use', Job Market Paper.
Summary by Mark Egan
This paper looks at the efficacy of using financial incentives to encourage prosocial behavior by levying a 5 cent tax on plastic bags in Washington D.C.Despite the trivial fee, it had a significant effect on disposable bag use. A similar policy that offered a 5 cent bonus had no significant effect on behavior. In the graph note the before/after effects in Montgomery County of introducing the tax.
Tactics used
TACTICS
Micro-Incentives
Behaviors addressed
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