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Evaluating Unit-Based Pricing Of Residential Solid Waste: A Panel Data Analysis

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Author Info

  • Takehiro Usui

    ()
    (Faculty of Economics,Soka University)

  • Kenji Takeuchi

    ()
    (Graduate School of Economics,Kobe University)

Abstract

Municipalities introduced unit-based pricing (UBP) with the aim of achieving a decrease in household waste generation and for the replacement of unsorted waste with recycling. Although many studies have shown that UBP has a short-run effect on recycling, few works have tackled the long-run effect on waste generation and recycling. By using panel data for 665 Japanese cities over 8 years, we examine the long-run effect of UBP on waste generation and recycling. The estimation results in waste generation suggest that there is a rebound effect, though a small one. We confirm that the effect of UBP on recycling sustains for the long run. We also find that the short- and long-run responses to an economic incentive for recycling activities differ with income groups. Recycling among the high-income group has not been promoted by implementation of UBP, but people in that group are willing to participate in recycling without an economic incentive. In contrast, recycling activity within the low-income group is strongly motivated by UBP for many years.

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File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2012/1203.pdf
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Bibliographic Info

Paper provided by Graduate School of Economics, Kobe University in its series Discussion Papers with number 1203.

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Length: 26pages
Date of creation: Mar 2012
Date of revision:
Handle: RePEc:koe:wpaper:1203

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Web page: http://www.econ.kobe-u.ac.jp
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Related research

Keywords: Unit-based pricing; Waste reduction; Recycling; Panel data analysis; Long-run effect;

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References

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  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. Hong Seonghoon & Adams Richard M. & Love H. Alan, 1993. "An Economic Analysis of Household Recycling of Solid Wastes: The Case of Portland, Oregon," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 136-146, September.
  3. John List & David Reiley, 2008. "Field experiments," Artefactual Field Experiments 00091, The Field Experiments Website.
  4. Heleen Bartelings & Thomas Sterner, 1999. "Household Waste Management in a Swedish Municipality: Determinants of Waste Disposal, Recycling and Composting," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 13(4), pages 473-491, June.
  5. Dijkgraaf, Elbert & Gradus, Raymond, 2009. "Environmental activism and dynamics of unit-based pricing systems," Resource and Energy Economics, Elsevier, vol. 31(1), pages 13-23, January.
  6. George L. Van Houtven & Glenn E. Morris, 1999. "Household Behavior under Alternative Pay-as-You-Throw Systems for Solid Waste Disposal," Land Economics, University of Wisconsin Press, vol. 75(4), pages 515-537.
  7. Saltzman, Cynthia & Duggal, Vijaya G. & Williams, Mary L., 1993. "Income and the recycling effort: a maximization problem," Energy Economics, Elsevier, vol. 15(1), pages 33-38, January.
  8. Seonghoon Hong & Richard M. Adams, 1999. "Household Responses to Price Incentives for Recycling: Some Further Evidence," Land Economics, University of Wisconsin Press, vol. 75(4), pages 505-514.
  9. Usui, Takehiro, 2008. "Estimating the effect of unit-based pricing in the presence of sample selection bias under Japanese Recycling Law," Ecological Economics, Elsevier, vol. 66(2-3), pages 282-288, June.
  10. 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.
  11. Jenkins, Robin R. & Martinez, Salvador A. & Palmer, Karen & Podolsky, Michael J., 2003. "The determinants of household recycling: a material-specific analysis of recycling program features and unit pricing," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 294-318, March.
  12. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
  13. Ida Ferrara, 2008. "Waste Generation and Recycling," OECD Journal: General Papers, OECD Publishing, vol. 2008(2), pages 19-58.
  14. G. Strathman & Anthony M. Rufolo & Gerard C. S. Mildner, 1995. "The Demand for Solid Waste Disposal," Land Economics, University of Wisconsin Press, vol. 71(1), pages 57-64.
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Cited by:
  1. Germà Bel & Raymond Gradus, 2014. "“Effects of unit-based pricing on the waste collection demand: a meta-regression analysis”," IREA Working Papers 201420, University of Barcelona, Research Institute of Applied Economics, revised Jun 2014.

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