Tuesday, December 22, 2009

People respond to incentives - the rubbish edition

RTE report on the move today by Dublin City Council to abolish the waiver of domestic waste charges that was in place for low-income households. These households will still be exempt from playing the standing charge, currently €96 per annum, and will get four free lifts per year but will have to pay a charge when they put out their bin for collection after that.

The charge per lift is €6. The average household not on a waiver puts their bin out 16 times a year. A household that puts their bin out 60% of the time (16 times a year) will incur a charge of €6 x 12 = €72. Why did the Council seek to have this change introduced? City Manager John Tierney provides the answer.
Mr Tierney added that the waiver scheme had not been an incentive to minimise output as those on waivers had been putting out almost double the amount of refuse as other households.
Those that did not have to pay a charge per bin lift put their bin out for 100% of collections (26 times a year). Those that have to a pay a charge per use put their bin out for 60% of collections (16 times a year). More here.

People even respond to rubbish incentives.

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