Crunch the Can or Throw the Bottle? Effect of “Bottle Deposit Laws” and Municipal Recycling Programs

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Although there is growing public awareness and concern about environmental issues, incentive mechanisms leading individuals to engage in pro-environmental behaviors remain less investigated. This article examines the impact of bottle deposit laws, municipal recycling programs, and the ease of municipal recycling on recycling frequency for numerous products. Utilizing very specific treatment groups and propensity score matching to control for unobserved heterogeneity, we find that municipal recycling programs have a greater impact on recycling behaviors than bottle deposit laws, and that the perceived ease of municipality recycling program positively influences individual recycling behaviors. For bottle deposit laws without a municipal program being present, their effect is only for those products requiring the deposit.

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