In this chapter we use data on 49 of the 95 municipalities analyzed in Bucciol et al. (2011) followed for two additional years (2009-2010) since 1999. In this dataset, 25 municipalities used a DtD collection system in combination with a flat-fee pricing until 2009 when a PAYT program was introduced. Other 24 municipalities immediately paired DtD program with a PAYT program. Our counterfactual analysis shows that the decision not to immediately introduce the PAYT produces a loss of a 10% on the sorted waste ratio. Moreover, we find that the effect of introducing PAYT largely varies with the initial level of the ratio, and is lower when PAYT is implemented under a higher ratio. This finding has an implication on the best timing of implementing a PAYT program: to gain most from the monetary incentive, PAYT should be implemented when the ratio is low.
Do not Miss the Opportunity! When to Introduce Monetary Incentives
BUCCIOL, Alessandro;Piovesan M.
2014-01-01
Abstract
In this chapter we use data on 49 of the 95 municipalities analyzed in Bucciol et al. (2011) followed for two additional years (2009-2010) since 1999. In this dataset, 25 municipalities used a DtD collection system in combination with a flat-fee pricing until 2009 when a PAYT program was introduced. Other 24 municipalities immediately paired DtD program with a PAYT program. Our counterfactual analysis shows that the decision not to immediately introduce the PAYT produces a loss of a 10% on the sorted waste ratio. Moreover, we find that the effect of introducing PAYT largely varies with the initial level of the ratio, and is lower when PAYT is implemented under a higher ratio. This finding has an implication on the best timing of implementing a PAYT program: to gain most from the monetary incentive, PAYT should be implemented when the ratio is low.
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