Working Paper: NBER ID: w15585
Authors: W. Kip Viscusi; Joel Huber; Jason Bell; Caroline Cecot
Abstract: Economic theory predicts that individual recycling behavior gravitates toward extremes--either diligent recycling or no recycling at all. Using a nationally representative sample of 3,158 bottled water users, this article finds that this prediction is borne out for consumer recycling of plastic water bottles. Both water bottle deposits and recycling laws foster recycling through a discontinuous effect that converts reluctant recyclers into diligent recyclers. Within this context, a number of factors influencing recycling emerge. The warm glow from being both an environmentalist and an environmental group member is about equal to the monetary value of 5 cent bottle deposits. Respondents from states with stringent recycling laws and bottle deposits have greater recycling rates. Consistent with recycling being a threshold response, the efficacy of these policy interventions is greater for those who do not already recycle, have lower income, and do not consider themselves to be environmentalists.
Keywords: Recycling; Behavioral Economics; Environmental Policy
JEL Codes: K23; K32; Q50; Q58
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| bottle deposits (L99) | recycling rates (L99) |
| recycling laws (L99) | recycling rates (L99) |
| bottle deposits and recycling laws (L99) | recycling rates (L99) |
| introduction of a bottle deposit law (L99) | shift in recycling behavior (L99) |
| financial incentives from bottle deposits (L99) | recycling behavior (L99) |
| warm glow effect (Y60) | recycling behavior (L99) |