Towards circular consumer behavior: Analysis of discount schemes on coffee cup use.

Through a natural experiment setting in Hong Kong, this study examines the effects of financial incentives and nudges on consumer choices among three types of coffee cups: bring-your-own-cup (BYOC), shop-provided reusable cups, and disposable cups. Our dataset comprises 223 structured observations of coffee shops with 522 data points. The financial incentive-a direct price instrument set as a discount-is offered exclusively to customers who bring their own cups, while shop-provided (reusable) cups are not eligible.