Factors moderating the effect of financial incentives on household recycling: A motivation crowding perspective

Abstract

Prior research has shown considerable variability in the impact of financial incentive interventions on household recycling behavior, but it remains unclear which factors determine the effect of incentive policies. Building on the motivation crowding framework, this study explores how intrapersonal, interpersonal, and policy framing factors moderate the incentive effect on household recycling. Theoretical propositions were evaluated using quasi-experimental data from an incentivized recycling program in Quzhou, China. Although the program increased the recycling levels of residents, it reduced individuals' intrinsic motivation to protect the environment and, through this, exerted a negative indirect effect on recycling behavior. Such motivation crowding out was more salient among people with higher levels of environmental self-identity or self-efficacy and those embedded in stronger neighbor ties or social norms. Consequently, the incentive program was less effective in promoting recycling behavior among these subpopulations. Framing the program in an environmentally beneficial way did not affect its motivational and behavioral influences. Overall, the results extend knowledge regarding the mechanisms underlying the performance of incentive policies and the conditions that affect policy effectiveness.