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Stick vs. Carrot

Posted on 29 June 2009 · Written by Mira Shenker

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Proof that sometimes disincentives work better than incentives: Ontario’s recent implementation of a five cent charge for plastic shopping bags is creating a change in consumer behaviour. Plastic bag use in Metros across the province is down by 70 per cent.

This in’t exactly infrastructure news, but it does relate to issues our industry is facing. In a word (or two): user pay. Lat year’s first ever road pricing forum  was just one way people working in the industry have advocated for user pay. Contributors to ReNew Canada have often argued that people should pay more for the services they’re currently taking for granted like water, roads and energy; that paying more for a service creates value and leads to a culture of conservation. One of the key elements of smart grid, metering, works off that same principle.

If consumers can see what their choice to be wasteful is costing them on a daily basis, they’ll start saving fast. This stat out of Ontario may seem small, but it proves sometimes a stick beats a carrot.

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Mira Shenker has been editor of ReNew Canada since May 2007. She has written articles on a wide variety of topics including financing, green building, governance and foreign investing.

Mira has written 38 posts on ReNew Canada.

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