Behavioral economics is a ¨method of economic analysis that applies psychological insights into human behaviors to explain economic decision-making¨, this was the method used in an experiment ran by the Curridabat Municipality to promote recycling habits among its residents.

Curridabat is a county to the east of San José, Costa Rica and which according to the Municipality has close to 20,600 homes out of these only 7% (1,425) recycled when the project began.

Journalist Djenane Villanueva reported for CNN on this experiment, which was done over a six-month period, the activity was proposed by INCAE Business School and organized in coordination with the local Municipality.

Initially, the Municipality left a mark in front of each home along with trash bags and a document explaining the initiative and the appropriate way to separate trash. Every week the homes that didn´t meet the goals were informed through notes ¨Thank you for recycling, however, you didn´t recycle enough, you didn´t reach the neighborhood average¨, this practice motivated residents to work harder and improve their recycling practices.

According to INCAE the percentage of homes that recycle went from 7% to 18%, six times the country average of 3%.

Edgar Mora, mayor of Curridabat explained that the project allowed them to understand the users´ psychology, the right incentives that will motivate them to use a service offered. The municipality is now working on the optimization of the routes of recollection and they plan to use an app and give out trash bags with barcodes that can be scanned and in this way, incorporate a differential fee that will motivate users to better their practices.