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Analysis of Optimal Solid Waste Recycling Policy: Evidence from U.S. Using Panel Data

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  • John Baffoe-Bonnie
  • Fidel Ezeala-Harrison

Abstract

We analyze how implementation of a market-based program of optimal recycling can be pursued and used to promote environmental quality. Presently in the U.S. economy, due to the relatively low private monetary costs of solid waste disposal, households and firms have little or no incentive to undertake recycling. As a result, most current recycling programs are apt to yield less than efficient outcomes. The paper offers a model for achieving an optimal level of recycling, and applies a combination of time-series and cross-sectional data to analyze and verify the potentials of an optimal recycling policy initiative toward an enhanced environmental management. Â JEL classification numbers: C33, Q24, Q28.

Suggested Citation

  • John Baffoe-Bonnie & Fidel Ezeala-Harrison, 2023. "Analysis of Optimal Solid Waste Recycling Policy: Evidence from U.S. Using Panel Data," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(3), pages 1-2.
    • Handle: RePEc:spt:admaec:v:13:y:2023:i:3:f:13_3_2
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    References listed on IDEAS

    as
    1. Jean de Beir & Mouez Fodha & Guillaume Girmens, 2007. "Recycling and Environmental Externalities: Should Recycling Be Subsidized? [Recyclage et externalités environnementales : Faut-il subventionner les activités de récupération recyclage ?]," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00144632, HAL.
    2. Kinnaman, Thomas C. & Shinkuma, Takayoshi & Yamamoto, Masashi, 2014. "The socially optimal recycling rate: Evidence from Japan," Journal of Environmental Economics and Management, Elsevier, vol. 68(1), pages 54-70.
    3. Scott J. Callan & Janet M. Thomas, 1997. "The Impact of State and Local Policies on the Recycling Effort," Eastern Economic Journal, Eastern Economic Association, vol. 23(4), pages 411-423, Fall.
    4. Scott J. Callan & Janet M. Thomas, 2006. "Analyzing Demand For Disposal And Recycling Services: A Systems Approach," Eastern Economic Journal, Eastern Economic Association, vol. 32(2), pages 221-240, Spring.
    5. Sidique, Shaufique F. & Lupi, Frank & Joshi, Satish V., 2010. "The effects of behavior and attitudes on drop-off recycling activities," Resources, Conservation & Recycling, Elsevier, vol. 54(3), pages 163-170.
    6. Yuan Shao & Xudong Deng & Qiankai Qing & Yajuan Wang, 2018. "Optimal Battery Recycling Strategy for Electric Vehicle under Government Subsidy in China," Sustainability, MDPI, vol. 10(12), pages 1-18, December.
    7. Thomas C. Kinnaman & Don Fullerton, 2002. "Garbage and Recycling with Endogenous Local Policy," Chapters, in: Don Fullerton & Thomas C. Kinnaman (ed.), The Economics of Household Garbage and Recycling Behavior, chapter 6, pages 120-143, Edward Elgar Publishing.
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    More about this item

    Keywords

    Recycling rate; Fixed and Random effects; Endogenous variables; Sample selection bias.;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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