Purpose This study quantifies the impact of the Dutch cash payment system on the environment and on climate change using a life cycle assessment (LCA). It examines both the impact of coins and of banknotes. In addition, it identifies areas within the cash payment system where the impact on the environment and on the climate can be reduced. Methods The ReCiPe endpoint (H) impact method was used for this LCA. The cash payment system has been divided into five subsystems: the production of banknotes, the production of coins, the operation phase, the end of life of banknotes and the end of life of coins. Two functional units were used: (1) cumulative cash payments in the Netherlands in 2015 and (2) the average single cash payment in the Netherlands in 2015. Input data for all processes within each subsystem was collected through interviews and literature study. Ten key companies and authorities in the cash payment chain contributed data, i.e. the Dutch central bank, the Royal Dutch Mint, a commercial bank, a cash logistic service provider, two cash-in-transit companies, two printing works, an ATM manufacturer and a municipal waste incinerator. Results and discussionThe environmental impact of the Dutch cash payment system in 2015 was 2.42 MPt (expressed in eco points) and its global warming potential (GWP) was 19 million kg CO 2 equivalents (CO 2 e). For an average single cash transaction, the environmental impact was 654 μPt and the GWP was 5.1 g CO 2 e. The operation phase (e.g. energy use of ATMs, transport of banknotes and coins) (64%) and coin production phase (31%) had the largest impact on the environment, while the operation phase also had the largest impact on climate change human health (89%) and climate change ecosystems (56%). Finally, scenario analysis shows that reductions of the environmental impact (47%) and the impact on climate change (50%) could be achieved by implementing a number of measures, namely reducing the number of ATMs, stimulating the use of renewable energy in ATMs, introducing hybrid trucks for cash transport and matching coins with other countries in the euro area. Conclusions This is the first study that investigates the environmental impact and GWP of the cash payment system in the Netherlands, by taking both the impact of banknotes and coins into account. The total environmental impact of cash payments in 2015 was 2.42 MPt and their GWP was 19 million kg CO 2 e.

Reproduction permitted only if source is stated.ISBN 978-3-95729-237-7 (Printversion) Non-technical summary Research QuestionWe investigate whether counterfeit banknotes are better detected by consumers and cashiers if the quality of the banknotes in circulation is high. For this purpose, a field study was conducted amongst 250 consumers and 261 retail cashiers in the Netherlands and Germany. Participants received a set of 200 banknotes with either a high or a low average soil level, each containing 20 counterfeit notes, which they were asked to detect. ContributionCounterfeit prevention is a major task for central banks, which often maintain that it is easier for the public to detect counterfeits if the quality of the banknotes in circulation is high. We are the first to provide evidence for the link between the quality of banknotes and counterfeit detection with respect to euro banknotes. In addition, we refine the methodology of the few existing studies on counterfeit detection by investigating detection rates and the incidence of false alarms simultaneously. Results and Policy RecommendationsConsumers detect 79% of the counterfeits and cashiers detect 88%. Cashiers' detection rate is 4.4 percentage points higher when the set is clean, while banknote quality is insignificant for consumers. The effect of cleanliness on detection rates is strongest at the beginning of the test when participants are inexperienced in the task.At the same time, more genuine banknotes are erroneously declared as counterfeit in the clean sets. When determining the quality of the banknotes in circulation, there appears to be a trade-off for central banks between ensuring a high counterfeit detection rate and raising too much suspicion among the public with regard to unusual, but genuine banknotes. Both the failure to detect counterfeits in circulation and doubts about the authenticity of genuine banknotes can cause costs for the public and potentially undermine trust in the currency.In addition, our results show that participants' performance improves considerably during the test and that elderly people perform significantly more poorly in the task. These findings suggest that central banks should continue their efforts to inform the general public and cashiers about banknote security features, preferably using counterfeits seized from circulation. It might be a worthwhile strategy to target their communication campaigns specifically at the elderly. Nichttechnische Zusammenfassung AbstractCounterfeit prevention is a major task for central banks, as it helps to maintain public confidence in the currency. It is often maintained that a high quality of the banknotes in circulation helps the public detect counterfeits. However, there has not been any scientific evidence in support of this assertion so far. The present study is a first attempt to fill this research gap.To investigate whether banknote quality affects counterfeit detection, De Nederlandsche Bank (DNB) and the Deutsche Bundesbank (DBB) conducted a field study in 2014 and 20...

No abstract

Reproduction permitted only if source is stated.ISBN 978-3-95729-237-7 (Printversion) Non-technical summary Research QuestionWe investigate whether counterfeit banknotes are better detected by consumers and cashiers if the quality of the banknotes in circulation is high. For this purpose, a field study was conducted amongst 250 consumers and 261 retail cashiers in the Netherlands and Germany. Participants received a set of 200 banknotes with either a high or a low average soil level, each containing 20 counterfeit notes, which they were asked to detect. ContributionCounterfeit prevention is a major task for central banks, which often maintain that it is easier for the public to detect counterfeits if the quality of the banknotes in circulation is high. We are the first to provide evidence for the link between the quality of banknotes and counterfeit detection with respect to euro banknotes. In addition, we refine the methodology of the few existing studies on counterfeit detection by investigating detection rates and the incidence of false alarms simultaneously. Results and Policy RecommendationsConsumers detect 79% of the counterfeits and cashiers detect 88%. Cashiers' detection rate is 4.4 percentage points higher when the set is clean, while banknote quality is insignificant for consumers. The effect of cleanliness on detection rates is strongest at the beginning of the test when participants are inexperienced in the task.At the same time, more genuine banknotes are erroneously declared as counterfeit in the clean sets. When determining the quality of the banknotes in circulation, there appears to be a trade-off for central banks between ensuring a high counterfeit detection rate and raising too much suspicion among the public with regard to unusual, but genuine banknotes. Both the failure to detect counterfeits in circulation and doubts about the authenticity of genuine banknotes can cause costs for the public and potentially undermine trust in the currency.In addition, our results show that participants' performance improves considerably during the test and that elderly people perform significantly more poorly in the task. These findings suggest that central banks should continue their efforts to inform the general public and cashiers about banknote security features, preferably using counterfeits seized from circulation. It might be a worthwhile strategy to target their communication campaigns specifically at the elderly. Nichttechnische Zusammenfassung AbstractCounterfeit prevention is a major task for central banks, as it helps to maintain public confidence in the currency. It is often maintained that a high quality of the banknotes in circulation helps the public detect counterfeits. However, there has not been any scientific evidence in support of this assertion so far. The present study is a first attempt to fill this research gap.To investigate whether banknote quality affects counterfeit detection, De Nederlandsche Bank (DNB) and the Deutsche Bundesbank (DBB) conducted a field study in 2014 and 20...

No abstract