The basics of economic theory say that humans have unlimited
wants and humans react to incentives. An incentive is basically a reason for
someone to do something. For example, to get a child to work diligently, the
teacher may put up stars on the board for good work. The star on the board is
the child's incentive to work hard. Similarly, a negative incentive is when a
teacher gives detention for poor conduct. The prospect of getting detention is
a child's incentive to not misbehave.
Many prolific economists(chiefly the authors of Freakonomics
- Stephen Dubner and Steven Levitt) are big believers in incentives and their
effects, and that is one of the main points in their books. They argue that
many times, incentives would be more effective than laws at curbing or
promoting certain behaviors.
Many governments have combined incentives and laws with good
results. In Toronto, Canada, for example, waste has to be split up into food
waste, recyclable waste, and other waste. If there is any mistake in sorting,
there is a fine. Also, trash is only collected once a week - this creates the
incentive to produce less trash, since you would have to keep the extra bags in
your home or garage.
Similarly, to reduce the usage of plastic baggies and
promote the usage of reusable sandwich bags, there needs to be an incentive.
Schools, for example, can have clubs and societies where members using reusable
sandwich bags would get a small percentage of extra credit to their final
grade. Even local city councils and municipalities could offer some sort of
benefit or bonus to people who recycle and reduce waste with diligence.
This is the theory behind ReusableBagStore.com's Referral
program. It is a referral program that offers two incentives: one to the
potential buyer going reusable to buy with a discount on the purchase, and
second to the referrer to refer as many people as possible, since they get
rewards according to how many people they send our way.
Some stores also offer programs where the customer receives
$5 in store credit to that very store. ReusableBagStore.com decided to break
the mold, be bold, and offer a gift card to any store that the customer likes!
Incentives will always remain powerful motivators for people
to do things. Eco friendly and green companies can really take advantage of
this to create greater awareness and excitement about their products and
services.
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