The Effects of Incentive Systems in Encouraging Consumers to Participate in Circular Consumption: An Extended Literature Review

Date

1-2023

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Dr. Ma. Angeles O. Catelo

Committee Member

Jaime Kim B. Arias Maria Angeles O. Catelo Gideon P. Carnaje Agham C. Cuevas

Abstract

Consumers play a significant role in a circular economy - ensuring the circulation of materials and decreasing the waste disposed of into the environment. However, consumer engagement is a common challenge among circular economy-driven countries. The main objective of this study is to determine how incentive systems influence participation in circular consumption by conducting an extended literature review, highlighting the state of the art in the field. This study will dive into how countries implement the circular economy, the effects of incorporating circularity in waste management, market failures in waste management, and identifying incentive systems in a circular economy. It will shape a synthesis that would contribute to the discussion on circular economy and the case of the Philippines. An extended literature review was conducted for this study, where 269 pieces of literature were reviewed and recorded as part of the bibliometric data. The literature review process was guided by a framework, keywords, and outline to ensure relevance and a coherent flow of information.

Four economic incentives were found in the bibliographic data: deposit-refund system, pay-as-you-throw schemes, extended producer responsibility, and bans on specific products. These economic incentives enabled countries to increase recycling and recovery rates and decrease waste generation. Previous literature also revealed several factors that drive user acceptance and engagement: awareness, positive image of circular products, product-perceived safety, product design, and circular economy strategies and systems.

This study revealed that circular economy-driven countries utilize action plans, laws and regulations, and incentive systems to become circular societies. Most countries implement the circular economy in waste management as it can reduce waste burden, decrease harmful emissions, promote environmental-friendly activities, and maximize resources and productivity. However, market failures in waste management were identified -inequality, information asymmetry, and negative externalities -which can be solved through economic incentives and technological innovation.

Concluding the study, the 269 pieces of literature emphasized the significance of the circular economy, especially in promoting sustainability and resource efficiency. Other countries' successes and mistakes in the circular economy could help the Philippines find ways to improve waste management and boost sustainability. This study would be helpful for governments and firms in having a deeper understanding of the circular economy, consumption, and incentive systems, which can be incorporated into plans, frameworks, and policies.

Language

English

LC Subject

Circular Economy, Circular Consumption, Consumer Engagement, Incentive Systems, Waste Management

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 E2 V55

Document Type

Thesis

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