Evaluating Unit-Based Pricing Of Residential Solid Waste: A Panel Data Analysis
AbstractMunicipalities 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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Bibliographic InfoPaper provided by Graduate School of Economics, Kobe University in its series Discussion Papers with number 1203.
Date of creation: Mar 2012
Date of revision:
Unit-based pricing; Waste reduction; Recycling; Panel data analysis; Long-run effect;
Find related papers by JEL classification:
- R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-03 (All new papers)
- NEP-ENV-2012-04-03 (Environmental Economics)
- NEP-URE-2012-04-03 (Urban & Real Estate Economics)
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