Modest and incomplete incentives may work: pricing plastic bags in Uruguay
Resumen:
We study the impact of voluntary prices on the demand for plastic bags, using two years of administrative data from a national supermarket chain in Uruguay. We find that prices of US$ 0.07 and US$ 0.10 per unit decreased the number of bags used by its customers in the range of 70% to 85%. We also find that in anticipation of the price, customers increased the use of bags by up to 38% in some branches before its implementation. This result has strong implications for future studies, regarding the need to use long pre-periods. According to our data, short pre periods could bias upward the estimation of the effect of the prices by up to 41%. Finally, we do not find evidence consistent with the supermarket suffering a loss of sales, due to clients moving to stores not pricing the bags. The fact that the supermarket is a discount chain (clients are more price sensitive) and that it seems to have chosen the cities and towns in which it had more market share to rollout the prices, may inform policy makers about the conditions under which incomplete and moderate incentives may work.
2021 | |
Plastic bags Price Consumer behavior Difference in difference Synthetic controls Anticipation effects |
|
Inglés | |
Universidad de Montevideo | |
REDUM | |
https://hdl.handle.net/20.500.12806/2442
https://doi.org/10.1016/j.jeem.2021.102525 |
|
Acceso abierto | |
Attribution-NonCommercial-NoDerivatives 4.0 Internacional |
_version_ | 1807356681167831040 |
---|---|
author | Cabrera, José María |
author2 | Caffera, Marcelo Cid, Alejandro |
author2_role | author author |
author_facet | Cabrera, José María Caffera, Marcelo Cid, Alejandro |
author_role | author |
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bitstream.checksumAlgorithm.fl_str_mv | MD5 MD5 MD5 MD5 MD5 |
bitstream.url.fl_str_mv | http://redum.um.edu.uy/bitstream/20.500.12806/2442/1/Modest_and_incomplete_incentives_may_work_Cabrera.pdf http://redum.um.edu.uy/bitstream/20.500.12806/2442/2/license_rdf http://redum.um.edu.uy/bitstream/20.500.12806/2442/3/license.txt http://redum.um.edu.uy/bitstream/20.500.12806/2442/4/Modest_and_incomplete_incentives_may_work_Cabrera.pdf.txt http://redum.um.edu.uy/bitstream/20.500.12806/2442/5/Modest_and_incomplete_incentives_may_work_Cabrera.pdf.jpg |
collection | REDUM |
dc.contributor.filiacion.es.fl_str_mv | Cabrera, José María. Universidad de Montevideo, Uruguay Caffera, Marcelo. Universidad de Montevideo, Uruguay Cid, Alejandro. Universidad de Montevideo, Uruguay |
dc.creator.none.fl_str_mv | Cabrera, José María Caffera, Marcelo Cid, Alejandro |
dc.date.accessioned.none.fl_str_mv | 2024-06-12T18:31:19Z |
dc.date.available.none.fl_str_mv | 2024-06-12T18:31:19Z |
dc.date.issued.es.fl_str_mv | 2021 |
dc.description.abstract.none.fl_txt_mv | We study the impact of voluntary prices on the demand for plastic bags, using two years of administrative data from a national supermarket chain in Uruguay. We find that prices of US$ 0.07 and US$ 0.10 per unit decreased the number of bags used by its customers in the range of 70% to 85%. We also find that in anticipation of the price, customers increased the use of bags by up to 38% in some branches before its implementation. This result has strong implications for future studies, regarding the need to use long pre-periods. According to our data, short pre periods could bias upward the estimation of the effect of the prices by up to 41%. Finally, we do not find evidence consistent with the supermarket suffering a loss of sales, due to clients moving to stores not pricing the bags. The fact that the supermarket is a discount chain (clients are more price sensitive) and that it seems to have chosen the cities and towns in which it had more market share to rollout the prices, may inform policy makers about the conditions under which incomplete and moderate incentives may work. |
dc.format.mimetype.es.fl_str_mv | application/pdf |
dc.identifier.doi.es.fl_str_mv | https://doi.org/10.1016/j.jeem.2021.102525 |
dc.identifier.uri.none.fl_str_mv | https://hdl.handle.net/20.500.12806/2442 |
dc.language.iso.none.fl_str_mv | eng |
dc.publisher.es.fl_str_mv | Elsevier |
dc.relation.ispartof.es.fl_str_mv | Journal of Environmental Economics and Management, vol. 110, 102525 |
dc.rights.es.fl_str_mv | Abierto |
dc.rights.license.none.fl_str_mv | Attribution-NonCommercial-NoDerivatives 4.0 Internacional |
dc.rights.none.fl_str_mv | info:eu-repo/semantics/openAccess |
dc.rights.uri.*.fl_str_mv | http://creativecommons.org/licenses/by-nc-nd/4.0/ |
dc.source.none.fl_str_mv | reponame:REDUM instname:Universidad de Montevideo instacron:Universidad de Montevideo |
dc.subject.keyword.es.fl_str_mv | Plastic bags Price Consumer behavior Difference in difference Synthetic controls Anticipation effects |
dc.title.none.fl_str_mv | Modest and incomplete incentives may work: pricing plastic bags in Uruguay |
dc.type.es.fl_str_mv | Artículo |
dc.type.none.fl_str_mv | info:eu-repo/semantics/article |
dc.type.version.es.fl_str_mv | Aceptada |
dc.type.version.none.fl_str_mv | info:eu-repo/semantics/acceptedVersion |
description | We study the impact of voluntary prices on the demand for plastic bags, using two years of administrative data from a national supermarket chain in Uruguay. We find that prices of US$ 0.07 and US$ 0.10 per unit decreased the number of bags used by its customers in the range of 70% to 85%. We also find that in anticipation of the price, customers increased the use of bags by up to 38% in some branches before its implementation. This result has strong implications for future studies, regarding the need to use long pre-periods. According to our data, short pre periods could bias upward the estimation of the effect of the prices by up to 41%. Finally, we do not find evidence consistent with the supermarket suffering a loss of sales, due to clients moving to stores not pricing the bags. The fact that the supermarket is a discount chain (clients are more price sensitive) and that it seems to have chosen the cities and towns in which it had more market share to rollout the prices, may inform policy makers about the conditions under which incomplete and moderate incentives may work. |
eu_rights_str_mv | openAccess |
format | article |
id | REDUM_1ad91d900eefa667d0ad5fd72e5901ce |
instacron_str | Universidad de Montevideo |
institution | Universidad de Montevideo |
instname_str | Universidad de Montevideo |
language | eng |
network_acronym_str | REDUM |
network_name_str | REDUM |
oai_identifier_str | oai:redum.um.edu.uy:20.500.12806/2442 |
publishDate | 2021 |
reponame_str | REDUM |
repository.mail.fl_str_mv | nolascoaga@um.edu.uy |
repository.name.fl_str_mv | REDUM - Universidad de Montevideo |
repository_id_str | 10501 |
rights_invalid_str_mv | Attribution-NonCommercial-NoDerivatives 4.0 Internacional Abierto http://creativecommons.org/licenses/by-nc-nd/4.0/ |
spelling | Attribution-NonCommercial-NoDerivatives 4.0 InternacionalAbiertohttp://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccess7ce83727-2feb-4746-9251-557791ca629729379aa7-bd77-483a-9074-54df31de362e6383a2bd-e52f-4ece-8cf6-e88ad065d71fCabrera, José María. Universidad de Montevideo, UruguayCaffera, Marcelo. Universidad de Montevideo, UruguayCid, Alejandro. Universidad de Montevideo, Uruguay2024-06-12T18:31:19Z2024-06-12T18:31:19Z2021https://hdl.handle.net/20.500.12806/2442https://doi.org/10.1016/j.jeem.2021.102525application/pdfengElsevierJournal of Environmental Economics and Management, vol. 110, 102525Modest and incomplete incentives may work: pricing plastic bags in UruguayArtículoAceptadainfo:eu-repo/semantics/acceptedVersioninfo:eu-repo/semantics/articleWe study the impact of voluntary prices on the demand for plastic bags, using two years of administrative data from a national supermarket chain in Uruguay. We find that prices of US$ 0.07 and US$ 0.10 per unit decreased the number of bags used by its customers in the range of 70% to 85%. We also find that in anticipation of the price, customers increased the use of bags by up to 38% in some branches before its implementation. This result has strong implications for future studies, regarding the need to use long pre-periods. According to our data, short pre periods could bias upward the estimation of the effect of the prices by up to 41%. Finally, we do not find evidence consistent with the supermarket suffering a loss of sales, due to clients moving to stores not pricing the bags. The fact that the supermarket is a discount chain (clients are more price sensitive) and that it seems to have chosen the cities and towns in which it had more market share to rollout the prices, may inform policy makers about the conditions under which incomplete and moderate incentives may work.Plastic bagsPriceConsumer behaviorDifference in differenceSynthetic controlsAnticipation effectsreponame:REDUMinstname:Universidad de Montevideoinstacron:Universidad de MontevideoCabrera, José MaríaCaffera, MarceloCid, AlejandroORIGINALModest_and_incomplete_incentives_may_work_Cabrera.pdfModest_and_incomplete_incentives_may_work_Cabrera.pdfapplication/pdf1756000http://redum.um.edu.uy/bitstream/20.500.12806/2442/1/Modest_and_incomplete_incentives_may_work_Cabrera.pdf24070566ef64c64e7abed27b0326a3bfMD51CC-LICENSElicense_rdflicense_rdfapplication/rdf+xml; charset=utf-8805http://redum.um.edu.uy/bitstream/20.500.12806/2442/2/license_rdf4460e5956bc1d1639be9ae6146a50347MD52LICENSElicense.txtlicense.txttext/plain; charset=utf-82117http://redum.um.edu.uy/bitstream/20.500.12806/2442/3/license.txt691ed290c8bf8671811a9242b7fc04b6MD53TEXTModest_and_incomplete_incentives_may_work_Cabrera.pdf.txtModest_and_incomplete_incentives_may_work_Cabrera.pdf.txtExtracted texttext/plain165634http://redum.um.edu.uy/bitstream/20.500.12806/2442/4/Modest_and_incomplete_incentives_may_work_Cabrera.pdf.txt3d54ae1cbfd2529ab1f69bbd738aa176MD54THUMBNAILModest_and_incomplete_incentives_may_work_Cabrera.pdf.jpgModest_and_incomplete_incentives_may_work_Cabrera.pdf.jpgGenerated Thumbnailimage/jpeg1362http://redum.um.edu.uy/bitstream/20.500.12806/2442/5/Modest_and_incomplete_incentives_may_work_Cabrera.pdf.jpg06f119a2238c868a2a3564fc5bfa2df3MD5520.500.12806/24422024-06-13 03:00:20.699oai:redum.um.edu.uy:20.500.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Universidadhttps://um.edu.uy/https://redum.um.edu.uy/oai/requestnolascoaga@um.edu.uyUruguayopendoar:105012024-06-13T06:00:20REDUM - Universidad de Montevideofalse |
spellingShingle | Modest and incomplete incentives may work: pricing plastic bags in Uruguay Cabrera, José María Plastic bags Price Consumer behavior Difference in difference Synthetic controls Anticipation effects |
status_str | acceptedVersion |
title | Modest and incomplete incentives may work: pricing plastic bags in Uruguay |
title_full | Modest and incomplete incentives may work: pricing plastic bags in Uruguay |
title_fullStr | Modest and incomplete incentives may work: pricing plastic bags in Uruguay |
title_full_unstemmed | Modest and incomplete incentives may work: pricing plastic bags in Uruguay |
title_short | Modest and incomplete incentives may work: pricing plastic bags in Uruguay |
title_sort | Modest and incomplete incentives may work: pricing plastic bags in Uruguay |
topic | Plastic bags Price Consumer behavior Difference in difference Synthetic controls Anticipation effects |
url | https://hdl.handle.net/20.500.12806/2442 https://doi.org/10.1016/j.jeem.2021.102525 |