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Environmental activism and dynamics of unit-based pricing systems

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Author Info

  • Dijkgraaf, E.

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Gradus, R.

Abstract

It is well-known that unit-based pricing systems have a significant effect on the quantity of collected waste. Part of this effect may, however, result from a selection bias or environmental activism effect. Based on a pooled cross-section for the Netherlands for 1998- 2005 we show that despite the correction for environmental activism the effect of the weight and bag unit-based pricing system on the quantity of waste is sizeable. Moreover, this environmental activism effect is decreasing over time, so that the most environmental friendly municipalities implement unit-based pricing systems at first. In addition, we show that the volume-effects of the different unit-based pricing systems are rather stable over time. Although we find some evidence for a learning effect, nearly no evidence is found for an awareness erosion effect. This means at least that the effect of unit-based pricing does not decrease over time, which is reassuring from an environmental point of view. Pricing waste helps.

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Bibliographic Info

Paper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0011.

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Date of creation: 2008
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Handle: RePEc:dgr:vuarem:2008-11

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Web page: http://www.feweb.vu.nl

Related research

Keywords: Unit-based pricing; selection bias; dynamics; learning effect;

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References

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  1. Don Fullerton & Thomas C. Kinnaman, 1994. "Household Responses to Pricing Garbage by the Bag," CARE Working Papers 9402, The University of Texas at Austin, Center for Applied Research in Economics.
  2. Calcott, Paul & Walls, Margaret, 2005. "Waste, recycling, and "Design for Environment": Roles for markets and policy instruments," Resource and Energy Economics, Elsevier, vol. 27(4), pages 287-305, November.
  3. Kinnaman Thomas C., 2005. "Why do Municipalities Recycle?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-25, February.
  4. Oecd, 2006. "Impacts of Unit-based Waste Collection Charges," OECD Papers, OECD Publishing, vol. 6(8), pages 1-157.
  5. Linderhof, Vincent & Kooreman, Peter & Allers, Maarten & Wiersma, Doede, 2001. "Weight-based pricing in the collection of household waste: the Oostzaan case," Resource and Energy Economics, Elsevier, vol. 23(4), pages 359-371, October.
  6. Elbert Dijkgraaf & Raymond Gradus, 2004. "Cost savings of unit-based pricing of household waste: The case of the Netherlands," Public Economics 0409001, EconWPA.
  7. Thomas C. Kinnaman, 2006. "Policy Watch: Examining the Justification for Residential Recycling," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 219-232, Fall.
  8. Elbert Dijkgraaf & Herman Vollebergh, 2005. "A Test for Parameter Homogeneity in CO 2Panel EKC Estimations," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 32(2), pages 229-239, October.
  9. Thomas C. Kinnaman & Don Fullerton, 1997. "Garbage and Recycling in Communities with Curbside Recycling and Unit-Based Pricing," NBER Working Papers 6021, National Bureau of Economic Research, Inc.
  10. Paul Isely & Aaron Lowen, 2007. "Price And Substitution In Residential Solid Waste," Contemporary Economic Policy, Western Economic Association International, vol. 25(3), pages 433-443, 07.
  11. Timothy K. M. Beatty & Peter Berck & Jay P. Shimshack, 2007. "Curbside Recycling In The Presence Of Alternatives," Economic Inquiry, Western Economic Association International, vol. 45(4), pages 739-755, October.
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Citations

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Cited by:
  1. 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, vol. 45(3), pages 405-428, March.
  2. Elbert Dijkgraaf & Raymond Gradus, 2014. "Efficiency Effects of Unit-based Pricing Systems and Institutional Choices of Waste Collection," Tinbergen Institute Discussion Papers 14-003/VI, Tinbergen Institute.
  3. Takehiro Usui & Kenji Takeuchi, 2012. "Evaluating Unit-Based Pricing Of Residential Solid Waste: A Panel Data Analysis," Discussion Papers 1203, Graduate School of Economics, Kobe University.
  4. Grazia Cecere & Susanna Mancinelli & Massimiliano Mazzanti, 2013. "Waste Prevention and Social Preferences: The Role of Intrinsic and Extrinsic Motivations," Working Papers 2013.44, Fondazione Eni Enrico Mattei.
  5. Giulio Cainelli & Massimiliano Mazzanti & Alessio D'Amato, 2013. "Adoption of Waste-Reducing Technology in Manufacturing: Regional Factors and Policy Issues," Working Papers 2013162, University of Ferrara, Department of Economics.
  6. Alessio D'Amato & Massimiliano Mazzanti & Francesco Nicolli, 2011. "Waste Sustainability, Environmental Management and Mafia: Analysing Geographical and Economic Dimensions," CEIS Research Paper 213, Tor Vergata University, CEIS, revised 24 Oct 2011.

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