Can small incentives have large effects? the impact of taxes versus bonuses on disposable bag use by Tatiana A. Homonoff
By: Homonoff, Tatiana A
.
Material type: 
ArticlePublisher: 2018Subject(s): INVERSIONES | INCENTIVOS | POLITICA FISCAL | MODELOS ECONOMETRICOSOnline resources: Click here to access online
In:
American Economic Journal. Economic Policy v. 10, n. 4, November 2018, p. 177-210Summary: This paper examines a simple element of financial incentive—design whether the incentive takes the form of a fee for bad behavior or a reward for good behavior—to determine if the framing of the incentive influences the policy’s effectiveness. I investigate the effect of two similar policies aimed at reducing disposable bag use: a $0.05 tax on disposable bag use and a $
0.05 bonus for reusable bag use. While the tax decreased disposable bag use by over 40 percentage points,
the bonus generated virtually no effect on behavior. These results are consistent with a model of loss aversion.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 2135/2018/4-1 (Browse shelf) | Available | OP 2135/2018/4-1 |
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Resumen.
Bibliografía.
This paper examines a simple element of financial incentive—design whether the incentive takes the form of a fee for bad behavior or a reward for good behavior—to determine if the framing of the incentive influences the policy’s effectiveness. I investigate the effect of two similar policies aimed at reducing disposable bag use: a $0.05 tax on disposable bag use and a $
0.05 bonus for reusable bag use. While the tax decreased disposable bag use by over 40 percentage points,
the bonus generated virtually no effect on behavior. These results are consistent with a model of loss aversion.
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