Improving Public Recycling with Nudges: Evidence from a Field Experiment in The LINK REIT’s Shopping Centres Professor. Richard M. WALKER Chair Professor of Public Management Associate Dean (Research and Postgraduate Studies) CLASS Director: Laboratory for Public Management and Policy & Mr Ivan LEE Senior Research Associate Laboratory for Public Management and Policy

 Introduction - Who we are and what we do  Recycling Experiment - Procedure & Result  Implications & Suggestion on dissemination strategies agenda

Public Management Publi Policy The lab operates at the interface of LaMP provides Hong Kong with a unique evidence lab that uses experimental methods to provide rigorous, robust and systematic empirical evidence on public policy, effective public management practices and performance. Website: Laboratory for Public Management & Policy (LaMP)

much social science (including public policy) research is observational

Element 1: Two (or more) comparison groups INTERVENTION GROUP CONTROL GROUP Element 2: Random assignment from population to groups Element 3: assessment of change in the DV for both groups after experimental condition has been received population experimental research designs offer advantages

benefits of using experimental methods Provide systematic and rigorous evidence on the effectiveness of policy. Enhance understandings of causal inference Eliminate alternate explanations of results Transparent procedures (with randomly assigned treatment and control groups) In-expensive, efficient to implement, quick results

nudging To alter people’s behavior in a predictable way without forbidding any options or significantly changing their economic incentives (Thaler and Sunstein, 2008). To give information and social cues so as to help people do positive things for themselves and society. (John et al, 2011). The implementation of nudges in public policy comes through the use of experimental methods.

examples of successful nudges United Kingdom - Behavioural Insights Team, Cabinet Office: 1.On tax demands explained that “most people in your local area had already paid their tax” led to a increase payment rates 15 percent, collected money early and freed up tax collectors time 2.Use of smart meters to give consumer feedback on energy consumption results in typical savings of 2-4%

Recycling Experiment in The Link REIT’s Shopping Centres Hong Kong’s example

Location University Concourse (4/F, AC1, CityU) Measurement Period Pre-test (1 week) & Pro-test (1 week) in March, 2014 Interventions on Garbage Bins (Nudges) 1.Road sign - indicating the direction and distance to the closest recycling bins 2.Stop Sign and Negative Slogan - reminding people the adverse consequence of non- recycle behavior Result 1.Around 30% increase in recycle rate CityU pilot study

Reversal (A-B-A) Design with Comparison Group Experimental phases Baseline period (3 weeks from Mar 17 to Apr 14)  No Treatment (A phase) Intervention period (3 weeks from Apr 14 to May 5)  Treatments installed (B phase) Post-intervention period (2 weeks from May 5 to May 19)  Treatments removed (A phase) Locations (Randomly selected from a list of shopping malls feasible for research. The list was provided by the Link REIT) Heng On Commercial Centre (Treatment 1) Yu Chui Shopping Centre (Treatment 2) Tsz Wan Shan Shopping Centre (Control) LINK research design

Weekly amount (in g) of recyclable materials (i.e., paper, plastic and aluminum) in recycling bins Collected and weighed by Student Interns (MA in Public Policy and Management) every Tuesday and Friday dependent variable

treatments Part 1: Directional Sign Part 2: Stop Sign Range: 10 ~ 115 sec Average: 55 sec

treatments (cont'd)

Total = 27 treated bins

results: Heng On Commercial Centre Weekly Average Amount (g) Experimental Phases (43%)

results: Tsz Wan Shan Shopping Centre Experimental Phases 2650 (9%) (27.5%) Weekly Average Amount (g)

results: comparison Experimental Phases Average Weekly Amount in terms of 1 st phase

summary & implication Summary The amount of recyclable materials is apparently affected by the installation and removal of interventions Around 20% net increase in amount of recycling after installing the interventions Implication Total cost for signage for 27 garbage bins = $432 (HKD) It is a simple, cost effective and generalizable approach that can moderately improve public recycling without involving financial disincentives

limitations The exclusion of Yu Chui Shopping Centre Since April 16, "Chuen Kee Environmental Resources Recycle (HK) Limited“ has started to collect and buy recyclable materials every week. Behavioral changes of cleansing workers (e.g., pre-packing the materials together with that in the garbage bins) Uncontrollable factors Elderly waste-collectors Contaminants in recycling bins Number of recycling bins –Heng On: 27:1 –Tsz Wan Shan: 42:2

dissemination 1.Press Release & Press Conference 2.SCMP Article (Student intern, 1 st year undergraduate BA Public Policy and Politics) 3.Presentation to Food and Environmental Hygiene Department (FEHD) & Environmental Protection Department (EPD) 4.SSCI Journal Article 5.CityU Websites

Thank You! How to get in touch with Laboratory for Public Management & Policy (LaMP) Professor Richard M. WALKER Mr. Ivan LEE or Dr Myoung Jin LEE e: t: Putting CityU’s Public Policy in Hong Kong society through nudges that achieve behavioral change