Friday, December 19, 2008

Why don't you recycle?

Let's be honest. Many of us don't do all what is in our hands to help the environment. Why? It is just another 5 minutes? We just need to separate paper and glass from the trash and put it in different containers, and then take the trash to the trash disposal, and the recyclable items downstairs to the entrance of the building... pffff... that sounds like a lot of work if you are in a hurry...

The building I live in asks its residents to recycle. However, we have trash disposals in every floor in the building... but look at the message that its written there:



Ok, so where should I take my recyclabels? Then here is the map of the complex:



Mmmh... alright. So, actually recycling involves some work and some time. But of course, it is worth of doing so, since we will save the environment for us, and the next generations.

But... if everybody is recycling but me, nothing bad is going to happen... My actions, either if I recycle or I don't, are not going to change anything. Well, that is exactly what I believe is the cause of this equilibrium of the majority of the world not recycling. Allow me to explain myself. The marginal contribution of one individual to the environment when he/she do environmental activities such as recycling tends to zero. We can save the environment if ALL of us work together, and the aggregate contribution is quite large.

So, if you are clear that if you recycle you could save the world, maybe you'll do it... but maybe not. Why not? Well, again, this will take you an extra 10 minutes of your day, maybe in average. You'll have to take down the recyclables, and maybe deviate from your routine walk from the elevator to your car or to the exit of the building. But maybe if you are in a hurry one day you won't do it... why? Because your time is valuable!

So let's put together all the components of the equation. First, your marginal contribution - as an individual - from recycling is zero (or almost zero) because you by yourself are not contributing. Moreover, the marginal utility you gain from recycling is almost zero, because the fruits of your work will be enjoyed by the future generations, and probably not by you, so unless you care too much for the future generations (which is not a bad assumption sometimes) you don't have any direct gains from recycling. But even if you care, in some countries you have uncertainty that even if you bring all your recyclables to the right place, they are not going to be recycled, so you just lost your efforts.

On the other hand, the cost of recycling is not zero, you have to invest some time in it, which has costs involved.

Consumer theory explains that you will keep consuming one good every time that the marginal utility from consuming it will be higher than the price that you are paying for it. So if recycling is not bringing you any utility, then there is no sense in recycling, and put your efforts in doing this.

Ok, at this point you are thinking that I am a inhumane person, that don't care about the environment. Not true. I care. The bottom line of my post is not that you don't recycle, but is that there are ways that could increase the rate of recycling among people. How? Incentives!

What can be done so that people will recycle more? Two things: either you increase their marginal utility from recycling, or you reduce the price of recycling. Both can be done.
  • The goal of publicity and concientization campaigns are intended to make you understand two things: (1) that your marginal contribution to the environment is more than zero, and (2) that you can have marginal utility from recycling. They argue that things can be done now, and that you will enjoy from a better Earth if you recycle, or put it in another way: you won't suffer from a deteriorated Planet Earth in 30 years time. This is what Al Gore is doing.
  • The other posibility is to reduce the cost of recycling. For example, putting in every floor recycle bins, and not ask people to go behind their buildings with 3 bags in the morning when they are in a hurry because they are late for work. Reclycling has to be MORE comfortable than non-recycling. The incentives has to be in place so that people will choose to recycle because is more convenient for them. Otherwise they will waste time.
So, for all of you out there, seriously, things are pretty tough, so start recycling!

Happy holidays!

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