Can small incentives have large effects? The impact of taxes versus bonuses on disposable bag use
Montgomery County, Maryland, tax from 1 January 2012; 16,251 customers in 16 stores; tax cut disposable bag use by over forty percentage points; bonus had virtually no effect; consistent with loss aversion.
Montgomery County, Maryland, tax from 1 January 2012; 16,251 customers in 16 stores; tax cut disposable bag use by over forty percentage points; bonus had virtually no effect; consistent with loss aversion.
Written from the full text read 2026-10-16.
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Homonoff, T. A. (2018). Can small incentives have large effects? The impact of taxes versus bonuses on disposable bag use. American Economic Journal: Economic Policy, 10(4), 177-210. doi:10.1257/pol.20150261.