Fuqua School of Business
Durham, NC 27706
NBER Working Papers and Publications
|December 2009||Discontinuous Behavioral Responses to Recycling Laws and Plastic Water Bottle Deposits|
with W. Kip Viscusi, Jason Bell, Caroline Cecot: w15585
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. Consiste...
Published: "Discontinuous Behavioral Responses to Recycling Laws and Plastic Water Bottle Deposits," with Joel Huber, Jason Bell, and Caroline Cecot, American Law and Economics Review, Vol. 15, No. 1 (Spring 2013), pp. 110-155. citation courtesy of
|January 2006||Hyperbolic Discounting of Public Goods|
with W. Kip Viscusi: w11935
This article examines revealed rates of time preference for public goods, using environmental quality as the case study. A nationally representative panel-based sample of 2,914 respondents considered a series of 5 conjoint policy choices, yielding 14,570 decisions. Both the conditional fixed effect logit estimates of the random utility model and mixed logit estimates implied that the rate of time preference is very high for immediate improvements and drops off substantially thereafter, which is inconsistent with exponential discounting but consistent with hyperbolic discounting. The implied marginal rate of time preference declines and then rises. Estimates of the quasi-hyperbolic discounting parameter range from 0.48 to 0.61. People who are older are especially likely to have a high disut...