The effectiveness of the e-money incentive mechanism in promoting separation of recyclables at source in Malaysia

Abstract

A new concept of a reward system by two e-money-incentive systems aimed at improving separation at source toward reducing residual waste generation and increasing recyclable collection was introduced in Malaysia by “Environment Idaman Sdn. Bhd.” The two systems were “Recycle for Life” (RFL) and “Barcode.” In this study, the effectiveness of the two new systems was measured and compared with other world practices to improve recyclables collection. The effectiveness of the “Barcode” system was significant in reducing 3.4% residual waste generation compared with the RFL system (0.08%) because the Barcode system allowed residents who separate their recyclables at source, to be rewarded by e-money without the need for them to bring their recyclables to the designated points. Based on a comparative study with world practices elsewhere, Malaysia also needs to develop sufficient collection and recycling systems to introduce a “negative incentive system,” to enhance recycling and reduce residual waste generation.