Cash Payment Regulation at Gas Stations at Night
Problems addressed
Robberies
Effectiveness

Effective

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Effective

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Life periods served
People of all ages
Where the program was applied
Commercial establishments or stores
Country of application
Uruguay
Description

This is a Uruguayan government program that regulates cash payments at night for all gas stations in Montevideo. The aim is to prevent robberies in establishments with high economic attractiveness.
Since May 2016, cash payments have been prohibited and strictly regulated between 10 PM and 6 AM, without exception. Before this change, approximately 30% of the average revenue of US$10,000 to US$15,000 from the city’s gas stations was paid in cash.
The new restriction did not impose any possible variations in fuel prices in the city, since Uruguay’s gas stations are regulated, and gasoline prices are set by the government.

Impact evaluations

An impact assessment showed a reduction by at least 30% (between 30% and 50%) in robbery rates in the areas of the city impacted by the program. There was no reduction in other types of non-financially motivated violent crime, such as domestic violence.
The researchers found no evidence of geographical or temporal displacement effects either. The results showed that the reduction in the amount of money may also explain the positive effects of the regulation for areas close to gas stations [1].

Bibliographic reference

[1] Gandelman, N., Munyo, I., & Schertz, E. (2019). Cash and Crime. Artículo presentado en 34th Annual Congress of the European Economic Association – 72nd European Meeting of the Econometric Society (EEA/ESEM 2019). Manchester, United Kingdom. https://www.bcu.gub.uy/Comunicaciones/Jornadas%20de%20Economa/SCHERTZ_E…

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