Using Coupon Incentives in Recycling Aluminum: A Market Approach to Energy Conservation Policy

Beginning of article

In the 1990s energy conservation and environmental issues have returned to the forefront in developing sound public policy. While interest appeared to dwindle during the 1980s, numerous studies in the 1970s suggested the conserving behavior of consumers as an alternative solution to energy-related problems (e.g., Belch 1979; Brooker 1976; Cook and Berrenberg 1981; Delprata 1977; Leonard-Barton 1981; McClelland and Canter 1981; Milstein 1977, 1979; Montgomery and Leonard-Barton 1977; Olsen 1981; Stern and Kirkpatrick 1977). While ecological concerns may encourage consumers to develop recycling behaviors as a means of energy conservation and social responsibility, economic self-interest may also be important (Allen, Calantone, and Schewe 1982; McClelland and Canter 1981; Richie and McDougall 1985).

Every consumer is a potential conserver. Techniques to foster voluntary social behavior and direct public policy initiatives need to be identified. Rather than relying exclusively on traditional methods of public regulation (i.e., legal sanctions, taxes, subsidies, public information, and community action), social marketing techniques (Henion 1981; Kotler and Zaltman 1971) hold potential for increasing conservation behavior. The purposes of this study are to examine the effects of demographic variables, previous recycling experience, attitudinal variables, and economic incentives on the voluntary recycling of aluminum.

ENERGY CONSERVATION AND THE RECYCLING OF ALUMINUM

While it is recognized that one must use aluminum containers to be able to personally recycle (assuming one does not recycle others' containers), aluminum recycling was selected for the study because it constitutes a substantial component of disposable waste for a broad segment of consumers (Fuller and Allen 1991). Its high value-to-weight ratio, ease of separability, and energy-saving potential (Chandler 1984; Jacobs and Bailey 1982-1983) make aluminum a logical target for social marketing research. As an energy intensive product, aluminum recycling translates to more than a 90 percent energy savings (Hill 1977) with less pollution.

In a typical year, Americans discard nearly 50 billion aluminum cans (Oregon Department of Environmental Quality 1988). Furthermore, it has been estimated that in 1988 alone, over two and one-half million tons of aluminum waste was generated with approximately 31.7 percent of this waste being recovered for reuse (U.S. Bureau of the Census 1991). As a result of the pervasive use of aluminum containers in the American lifestyle, aluminum recycling has become an object of state and municipal legislation either in the form of container deposit bills or trash separation ordinances (Sjolander and Chen 1989).

To develop a successful recycling program, public acceptance is essential (Mulligan and Powell 1979). In states where container and bottle deposits are mandatory, consumers have exhibited a gradual acceptance of the programs over time (Chen and Sjolander 1988; Crosby, Gill, and Taylor 1981; Crosby and Taylor 1982; Murphy 1974; Sjolander and Chen 1989). More recent studies of curbside recycling programs estimate high (80-90 percent) participation rates by community residents (Fuller and Allen 1992; Glenn and Riggle 1990). Participation and support for mandatory return systems suggest that legislative solutions to the conservation issue may be accepted by the public. However, the potential of a market approach for stimulating conservation behavior and its impact on consumers' dispositions may provide additional suggestions for policymakers.

Several motivational considerations are likely to be influential in consumers' acceptance of recycling behavior (DeYoung 1985-1986, 1986). Studies exploring attitudes toward energy conservation have found that consumers who support conserving behaviors are largely sympathetic toward environmental issues and feel responsible for helping solve energy-related problems (e.g., Barnaby and Reizenstein 1976; Becker et al. 1981; Cunningham and Lopreato 1977; Durand 1979; Milstein 1977, 1979; Olsen 1981; Olsen and Goodnight 1977; Seligman et al. 1979; Talarzyk and Omura 1974; Tashchian, Slama, and Tashchian 1984; Warkov 1978; Winnett and Neale 1979). Recent studies suggest that attitudes toward conservation are important in getting consumers to recycle tin (Kok and Siero 1985) and aluminum (Allen 1987). Additionally, attitudes reflected by significant others have been suggested as a determinant of conserving behavior (Allen 1987; Allen, Calantone, and Schewe 1982).

Socioeconomic and demographic factors have been identified as relating to consumer views on energy conservation. Many studies have suggested such demographic variables as education, income, gender, age, and occupational status to be significant predictors of energy conservation behavior (e.g., Barnaby and Reizenstein 1976; Bejou and Thorne 1991; Cunningham and Lopreato 1977; Curtin 1975; Downs and Freiden 1983; Gotlieb and Matre 1976; Greer 1976; Morrison and Gladhart 1976; Olsen and Goodnight 1977; Talarzyk and Omura 1974; Thompson and MacTavish 1976). Nevertheless, inconsistent findings across these studies indicate that demographic factors related to recycling behavior may be context specific.

Policy choices that affect conserving behavior include the selection of incentives, materials to be collected, and methods of collection (Milner 1989; Pelso and Ruckert 1987). Although a market for aluminum recycling exists, the effectiveness of private initiatives to further encourage voluntary recycling has not been thoroughly examined. Increased marketing efforts need to be undertaken to motivate the conservation behavior of recyclers and nonrecyclers alike. One motivational technique that has been successfully employed in traditional channels of distribution is couponing.

COUPONING

American consumers saved an estimated $4 billion through use of cents-off coupons in 1991. According to the results of a study released by NCH Promotional Services (1992) this is a 14 percent increase over 1990 savings. …