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Household Responses to Price Incentives for Recycling: Some Further Evidence

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  • Seonghoon Hong
  • Richard M. Adams
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    Abstract

    This paper investigates the role of waste disposal service fees and household characteristics in determining recycling rates and waste generation. Using individual household data from Portland, Oregon, we model a multistage household decision process regarding waste generation and recycling effort under a block pricing system, including the choice of container size and reduced-form demand equations for recyclables, non-recyclables, and recycling rate. The choice of container size is not affected by the price of waste disposal services, but within a given container size, households respond to a price increase by increasing recycling to avoid charges for waste generation above contracted volumes.

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    Bibliographic Info

    Article provided by University of Wisconsin Press in its journal Land Economics.

    Volume (Year): 75 (1999)
    Issue (Month): 4 ()
    Pages: 505-514

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    Handle: RePEc:uwp:landec:v:75:y:1999:i:4:p:505-514

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    Web page: http://le.uwpress.org/

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    Cited by:
    1. Hai-Lan Yang & Robert Innes, 2007. "Economic Incentives and Residential Waste Management in Taiwan: An Empirical Investigation," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 37(3), pages 489-519, July.
    2. Caplan, Arthur J. & Grijalva, Therese C. & Jakus, Paul M., 2002. "Waste not or want not? A contingent ranking analysis of curbside waste disposal options," Ecological Economics, Elsevier, Elsevier, vol. 43(2-3), pages 185-197, December.
    3. Takehiro Usui & Kenji Takeuchi, 2012. "Evaluating Unit-Based Pricing Of Residential Solid Waste: A Panel Data Analysis," Discussion Papers, Graduate School of Economics, Kobe University 1203, Graduate School of Economics, Kobe University.
    4. Palmer, Karen & Martinez, Salvador & Jenkins, Robin & Podolsky, Michael, 1999. "The Determinants of Household Recycling: A Material Specific Analysis of Unit Pricing and Recycling Program Attributes," Discussion Papers, Resources For the Future dp-99-41-rev, Resources For the Future.
    5. Germà Bel & Raymond Gradus, 2014. "“Effects of unit-based pricing on the waste collection demand: a meta-regression analysis”," IREA Working Papers, University of Barcelona, Research Institute of Applied Economics 201420, University of Barcelona, Research Institute of Applied Economics, revised Jun 2014.
    6. Ida Ferrara & Paul Missios, 2012. "A Cross-Country Study of Household Waste Prevention and Recycling: Assessing the Effectiveness of Policy Instruments," Land Economics, University of Wisconsin Press, University of Wisconsin Press, vol. 88(4), pages 710-744.
    7. Bohara, Alok K. & Caplan, Arthur J. & Grijalva, Therese, 2007. "The effect of experience and quantity-based pricing on the valuation of a curbside recycling program," Ecological Economics, Elsevier, Elsevier, vol. 64(2), pages 433-443, December.
    8. Maarten A. Allers & Corine Hoeben, 2010. "Effects of Unit-Based Garbage Pricing: A Differences-in-Differences Approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 45(3), pages 405-428, March.
    9. Brandon C. Koford & Glenn C. Blomquist & David M. Hardesty & Kenneth R. Troske, 2012. "Estimating Consumer Willingness to Supply and Willingness to Pay for Curbside Recycling," Land Economics, University of Wisconsin Press, University of Wisconsin Press, vol. 88(4), pages 745-763.
    10. W. Kip Viscusi & Joel Huber & Jason Bell & Caroline Cecot, 2009. "Discontinuous Behavioral Responses to Recycling Laws and Plastic Water Bottle Deposits," NBER Working Papers 15585, National Bureau of Economic Research, Inc.
    11. van den Bergh, Jeroen C.J.M., 2008. "Environmental regulation of households: An empirical review of economic and psychological factors," Ecological Economics, Elsevier, Elsevier, vol. 66(4), pages 559-574, July.
    12. Bevin Ashenmiller, 2006. "The Effect of Income on Recycling Behavior in the Presence of a Bottle Law: New Empirical Results," Occidental Economics Working Papers, Occidental College, Department of Economics 10, Occidental College, Department of Economics, revised Jan 2006.
    13. Usui, Takehiro, 2008. "Estimating the effect of unit-based pricing in the presence of sample selection bias under Japanese Recycling Law," Ecological Economics, Elsevier, Elsevier, vol. 66(2-3), pages 282-288, June.
    14. Scott J. Callan & Janet M. Thomas, 2006. "Analyzing Demand For Disposal And Recycling Services: A Systems Approach," Eastern Economic Journal, Eastern Economic Association, Eastern Economic Association, vol. 32(2), pages 221-240, Spring.
    15. Yen-Lien Kuo & Charles Perrings, 2010. "Wasting Time? Recycling Incentives in Urban Taiwan and Japan," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 47(3), pages 423-437, November.
    16. Thomas C. Kinnaman, 2006. "Policy Watch: Examining the Justification for Residential Recycling," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 20(4), pages 219-232, Fall.
    17. Don Fullerton & Andrew Leicester & Stephen Smith, 2008. "Environmental Taxes," NBER Working Papers 14197, National Bureau of Economic Research, Inc.

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