The Perceived Role of Financial Incentives in Promoting Waste Recycling—Empirical Evidence from Finland

Placing emphasis on promoting the reduction, reuse, recycling, recovery and repair of waste has been a critical aspect of the sustainable waste management agenda. Considering recycling, an environmentally friendly and sustainable waste management option, monetary rewards are in place for certain recyclable municipal waste materials in Finland. The study investigates consumers’ perception about the role of financial incentives in effecting the recycling of municipal solid waste materials in Finland. The study also considers drivers for recycling municipal solid waste on the basis of behavioural change factors, such as environmental risk, behavioural economics, resource value, economic benefit, convenience, knowledge, legislation and belief. It further determines the association between income-earning consumers and non-income-earning consumers in their perception of financial incentives for recycling. The empirical results from the study confirm that the role of financial incentive is important in accelerating the recycling of municipal solid waste. A weak-to-positive relationship exists between drivers for recycling municipal solid waste and recycling behaviour. There exists no statistically significant difference in the means of the perceived role of financial incentives for recycling in the two groups. The introduction of financial incentives for other recyclable wastes is required in order to boost consumers’ participation in the recycling of municipal solid waste. The need to pay more attention to intrinsic and extrinsic factors, as they affect the participation members of the society in the recycling of municipal solid waste, is paramount. This has become necessary in ensuring sustainable waste management in Finland