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Nudging People to Recycle
        Using Judgment & Decision Tools




                            Casper Hsieh
                            Han Nim Jang
                                   Jun Li
Agenda
1. Background

2. Programs

3. Experiments

4. Success Metric

5. Conclusion
Problem




                                      Success
Background   Programs    Experiment             Conclusion
                                       Metric
Why the Problem Exists


       • Confusion
       • No loss
       • No Incentive




                                        Success
Background      Programs   Experiment             Conclusion
                                         Metric
Programs


                               1. Reduction in Choices
                               2. Posters
                               3. Penalty System




                                       Success
Background   Programs     Experiment             Conclusion
                                        Metric
Reduction in Choices
                     1. Analysis Paralysis
                     2. Rational Ignorance




                                             Success
Background    Programs      Experiment                 Conclusion
                                              Metric
Reduction in Choices




                                      Success
Background    Programs   Experiment             Conclusion
                                       Metric
Posters
                  Recycling Area


                        Public Area


                Fine Payment Area


                                        Success
Background   Programs      Experiment             Conclusion
                                         Metric
Recycling Area
                                     Cognitive Dissonance




                                     Peer Effect



                                     Success
Background   Programs   Experiment                 Conclusion
                                      Metric
In Public

                                       Anticipated Regret




                                       Prospect Theory
                                        (Loss Aversion)



                                         Success
Background   Programs     Experiment                   Conclusion
                                          Metric
Payment Location



                                     Opportunity Cost
                                        Salience




                                     Success
Background   Programs   Experiment                Conclusion
                                      Metric
Penalty System




                   • Public / Private
                                        Success
Background   Programs    Experiment               Conclusion
                                         Metric
Public                        Private
                   Streets
Definition         Shopping malls              Residential Area
                   Movie Theatres


                   High Frequency              High Frequency
 Penalty
                   Small Amount                Large Amount



Enforcers         Police officers / Security     Public inspectors




                                                 Success
 Background   Programs        Experiment                        Conclusion
                                                  Metric
Private
Households:
 Government issued plastic bags
 Easily accessible




Exception: Condominium
Difficult to monitor and identify the households
Unrealistic
Costs outweigh benefits
Future importance

                                                    Success
Background        Programs       Experiment                   Conclusion
                                                     Metric
Payment System

      Location: Government Agency
      No prepayment
      Time limit
      Lateness charges




                                       Success
Background     Programs   Experiment             Conclusion
                                        Metric
Experiment
                              Garbage
      1      Garbage
                              Recycle


                              Garbage
      2      Recycle                            Wrong Compartment
                              Recycle                                3
                                                 Right Compartment
   Measurement:
   1) % of garbage in recycling
   2) % of recycled items in the garbage
   3) % of recycled items in the wrong recycling compartments.


                                                   Success
Background         Programs       Experiment                     Conclusion
                                                    Metric
Control Group
                                                                             69%
             70%


             60%


             50%


             40%
                                                     31%
Percentage
             30%               18%
             20%


             10%


             0%

                   Garbage in Recycling    Recycling Items in     Recycling Items in
                      Compartment         Incorrect Recycling         Garbage
                                             Compartment

                                                                Success
Background              Programs          Experiment                               Conclusion
                                                                 Metric
Experiment #1




                                     Success
Background   Programs   Experiment             Conclusion
                                      Metric
Results
                                    Experiment #2: Poster Program
                                                                       69%
             70%


             60%


             50%


             40%                                 31%
Percentage                                                                   27%      Control Group
             30%
                           18%                                                        Poster Program
             20%


             10%                  2%                    3%

             0%

                   Garbage in Recycling    Recycling Items in   Recycling Items in
                      Compartment         Incorrect Recycling       Garbage
                                            Compartment

                                                                         Success
  Background                Programs              Experiment                         Conclusion
                                                                          Metric
Experiment #2
                    Paradox of Choice




                                        Success
Background   Programs     Experiment              Conclusion
                                         Metric
Results
                         Experiment #2: Reduction in Choices
                                                        69%
              70%

              60%

              50%

              40%
Percentage
              30%                                             24%    Control Group
                        18%                                          Reduction in Choice
              20%
                              6%
              10%

              0%
                     Garbage in                   Recycling Items
                      Recycling                     in Garbage
                    Compartment

                                                           Success
 Background           Programs       Experiment                        Conclusion
                                                            Metric
Limitations

    •   Sample size is small
    •   Statistically insignificant
    •   Assumption in behavior
    •   Hard to identify is clear causal relationship




                                            Success
Background      Programs      Experiment                Conclusion
                                             Metric
Success Metrics
  The benchmarks of success are the followings:
                                                                             30%

             30%

             25%

             20%


Percentage   15%                10%                   10%

             10%

             5%

             0%
                   Garbage in Recycling    Recycling Items in   Recycling Items in
                      Compartment         Incorrect Recycling       Garbage
                                            Compartment


                                                                Success
  Background            Programs           Experiment                                Conclusion
                                                                 Metric
Conclusion
             People are Irrational
             • No Incentive
             • Confusion
             • No loss

             Three Programs
             Reduction in Choices
             Posters
             Penalty System

             Experiment
             • Posters
             • Paradox of Choice



                                           Success
Background    Programs        Experiment             Conclusion
                                            Metric
The End


             Thank you for listening!




                                       Success
Background   Programs     Experiment             Conclusion
                                        Metric
Q&A

                                     Success
Background   Programs   Experiment             Conclusion
                                      Metric
Appendix
• http://www.recycling-guide.org.uk/facts.html
• http://www.environment-green.com/
Problem
             “Approximately 60% of our rubbish thrown away
             today could be recycled. “


             “The unreleased energy contained in the average
             dustbin each year could power a television for
             5,000 hours.”


             “A survey was done and 9 out of 10 people
             surveyed said they would recycle more if it was
             easier.”


                                                Success
Background       Programs       Experiment                     Conclusion
                                                 Metric

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Nudging People to Recycle

  • 1. Nudging People to Recycle Using Judgment & Decision Tools Casper Hsieh Han Nim Jang Jun Li
  • 2. Agenda 1. Background 2. Programs 3. Experiments 4. Success Metric 5. Conclusion
  • 3. Problem Success Background Programs Experiment Conclusion Metric
  • 4. Why the Problem Exists • Confusion • No loss • No Incentive Success Background Programs Experiment Conclusion Metric
  • 5. Programs 1. Reduction in Choices 2. Posters 3. Penalty System Success Background Programs Experiment Conclusion Metric
  • 6. Reduction in Choices 1. Analysis Paralysis 2. Rational Ignorance Success Background Programs Experiment Conclusion Metric
  • 7. Reduction in Choices Success Background Programs Experiment Conclusion Metric
  • 8. Posters Recycling Area Public Area Fine Payment Area Success Background Programs Experiment Conclusion Metric
  • 9. Recycling Area Cognitive Dissonance Peer Effect Success Background Programs Experiment Conclusion Metric
  • 10. In Public Anticipated Regret Prospect Theory (Loss Aversion) Success Background Programs Experiment Conclusion Metric
  • 11. Payment Location Opportunity Cost Salience Success Background Programs Experiment Conclusion Metric
  • 12. Penalty System • Public / Private Success Background Programs Experiment Conclusion Metric
  • 13. Public Private  Streets Definition  Shopping malls  Residential Area  Movie Theatres  High Frequency  High Frequency Penalty  Small Amount  Large Amount Enforcers Police officers / Security Public inspectors Success Background Programs Experiment Conclusion Metric
  • 14. Private Households:  Government issued plastic bags  Easily accessible Exception: Condominium Difficult to monitor and identify the households Unrealistic Costs outweigh benefits Future importance Success Background Programs Experiment Conclusion Metric
  • 15. Payment System  Location: Government Agency  No prepayment  Time limit  Lateness charges Success Background Programs Experiment Conclusion Metric
  • 16. Experiment Garbage 1 Garbage Recycle Garbage 2 Recycle Wrong Compartment Recycle 3 Right Compartment Measurement: 1) % of garbage in recycling 2) % of recycled items in the garbage 3) % of recycled items in the wrong recycling compartments. Success Background Programs Experiment Conclusion Metric
  • 17. Control Group 69% 70% 60% 50% 40% 31% Percentage 30% 18% 20% 10% 0% Garbage in Recycling Recycling Items in Recycling Items in Compartment Incorrect Recycling Garbage Compartment Success Background Programs Experiment Conclusion Metric
  • 18. Experiment #1 Success Background Programs Experiment Conclusion Metric
  • 19. Results Experiment #2: Poster Program 69% 70% 60% 50% 40% 31% Percentage 27% Control Group 30% 18% Poster Program 20% 10% 2% 3% 0% Garbage in Recycling Recycling Items in Recycling Items in Compartment Incorrect Recycling Garbage Compartment Success Background Programs Experiment Conclusion Metric
  • 20. Experiment #2 Paradox of Choice Success Background Programs Experiment Conclusion Metric
  • 21. Results Experiment #2: Reduction in Choices 69% 70% 60% 50% 40% Percentage 30% 24% Control Group 18% Reduction in Choice 20% 6% 10% 0% Garbage in Recycling Items Recycling in Garbage Compartment Success Background Programs Experiment Conclusion Metric
  • 22. Limitations • Sample size is small • Statistically insignificant • Assumption in behavior • Hard to identify is clear causal relationship Success Background Programs Experiment Conclusion Metric
  • 23. Success Metrics The benchmarks of success are the followings: 30% 30% 25% 20% Percentage 15% 10% 10% 10% 5% 0% Garbage in Recycling Recycling Items in Recycling Items in Compartment Incorrect Recycling Garbage Compartment Success Background Programs Experiment Conclusion Metric
  • 24. Conclusion People are Irrational • No Incentive • Confusion • No loss Three Programs Reduction in Choices Posters Penalty System Experiment • Posters • Paradox of Choice Success Background Programs Experiment Conclusion Metric
  • 25. The End Thank you for listening! Success Background Programs Experiment Conclusion Metric
  • 26. Q&A Success Background Programs Experiment Conclusion Metric
  • 28. Problem “Approximately 60% of our rubbish thrown away today could be recycled. “ “The unreleased energy contained in the average dustbin each year could power a television for 5,000 hours.” “A survey was done and 9 out of 10 people surveyed said they would recycle more if it was easier.” Success Background Programs Experiment Conclusion Metric