IDEAS home Printed from https://ideas.repec.org/p/usu/wpaper/2004-15.html
   My bibliography  Save this paper

The Effect of Experience and Quantity-Based Pricing of the Valuation of the Curbside Recycling Program

Author

Listed:
  • Arthur Caplan
  • Therese Grijalva
  • Alok Bohara

Abstract

Quantity-based pricing for garbage collection services and recycling programs are becoming increasingly popular methods of meeting municipal solid waste diversion objectives. This article investigates household willingness to pay (WTP) for a pilot curbside recycling program (CRP) in the presence of a quantity-based pricing scheme for garbage collection services. The pilot CRP provides a unique treatment effect that more precisely determines a household's level of real experience with curbside recycling than may be accomplished by respondents simply stating their experience levels. Moreover, unlike previous studies that have modeled the simultaneity of these household decisions as a two-step process, we jointly estimate the household's intentions using a full-information maximum-likelihood (FIML) approach. We find that participants in the pilot CRP are more likely than non-participants to reduce their container size and that for those that intend to reduce their container size, WTP for participants is larger than for non-participants. Taken together, these results suggest that the benefits of curbside recycling may be closely linked with the availability of a quantity-based pricing scheme for garbage collection. In particular, there appears to be a virtuous cycle for the household between choosing to recycle and reducing the size of its garbage container.

Suggested Citation

  • Arthur Caplan & Therese Grijalva & Alok Bohara, 2004. "The Effect of Experience and Quantity-Based Pricing of the Valuation of the Curbside Recycling Program," Working Papers 2004-15, Utah State University, Department of Economics.
    • Handle: RePEc:usu:wpaper:2004-15
    as

    Download full text from publisher

    File URL: https://repec.bus.usu.edu/RePEc/usu/pdf/ERI2004-15.pdf
    File Function: First version, 2004
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. David Aadland & Arthur J. Caplan, 2006. "Curbside recycling: Waste resource or waste of resources?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 25(4), pages 855-874.
    2. Don Fullerton & Wenbo Wu, 2002. "Policies for Green Design," Chapters, in: Don Fullerton & Thomas C. Kinnaman (ed.), The Economics of Household Garbage and Recycling Behavior, chapter 5, pages 102-119, Edward Elgar Publishing.
    3. Haab, Timothy C. & McConnell, Kenneth E., 1997. "Referendum Models and Negative Willingness to Pay: Alternative Solutions," Journal of Environmental Economics and Management, Elsevier, vol. 32(2), pages 251-270, February.
    4. 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.
    5. Don Fullerton & Thomas C. Kinnaman, 2002. "Household Responses to Pricing Garbage by the Bag," Chapters, in: Don Fullerton & Thomas C. Kinnaman (ed.), The Economics of Household Garbage and Recycling Behavior, chapter 4, pages 88-101, Edward Elgar Publishing.
    6. Cameron, Trudy Ann & Englin, Jeffrey, 1997. "Respondent Experience and Contingent Valuation of Environmental Goods," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 296-313, July.
    7. Alberini Anna, 1995. "Efficiency vs Bias of Willingness-to-Pay Estimates: Bivariate and Interval-Data Models," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 169-180, September.
    8. 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.
    9. Berrens, Robert P. & Bohara, Alok K. & Jenkins-Smith, Hank & Silva, Carol L. & Ganderton, Philip & Brookshire, David, 1998. "A joint investigation of public support and public values: case of instream flows in New Mexico," Ecological Economics, Elsevier, vol. 27(2), pages 189-203, November.
    10. James D. Reschovsky & Sarah E. Stone, 1994. "Market incentives to encourage household waste recycling: Paying for what you throw away," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 13(1), pages 120-139.
    11. Aadland, David & Caplan, Arthur J., 2006. "Cheap talk reconsidered: New evidence from CVM," Journal of Economic Behavior & Organization, Elsevier, vol. 60(4), pages 562-578, August.
    12. David Aadland & Arthur Caplan, 1999. "Household Valuation of Curbside Recycling," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 42(6), pages 781-799.
    13. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
    14. Cameron, Trudy Ann & James, Michelle D, 1987. "Efficient Estimation Methods for "Closed-ended' Contingent Valuation Surveys," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 269-276, May.
    15. 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.
    16. 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, vol. 43(2-3), pages 185-197, December.
    17. Eom, Young-Sook & Larson, Douglas M., 2006. "Improving environmental valuation estimates through consistent use of revealed and stated preference information," Journal of Environmental Economics and Management, Elsevier, vol. 52(1), pages 501-516, July.
    18. Alberini Anna, 1995. "Optimal Designs for Discrete Choice Contingent Valuation Surveys: Single-Bound, Double-Bound, and Bivariate Models," Journal of Environmental Economics and Management, Elsevier, vol. 28(3), pages 287-306, May.
    19. 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.
    20. Berglund, Christer, 2006. "The assessment of households' recycling costs: The role of personal motives," Ecological Economics, Elsevier, vol. 56(4), pages 560-569, April.
    21. David Aadland & Arthur J. Caplan, 2003. "Willingness to Pay for Curbside Recycling with Detection and Mitigation of Hypothetical Bias," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 492-502.
    22. Annegrete Bruvoll & Karine Nyborg, 2004. "The Cold Shiver of Not Giving Enough: On the Social Cost of Recycling Campaigns," Land Economics, University of Wisconsin Press, vol. 80(4).
    23. Boyle Kevin J. & Welsh Michael P. & Bishop Richard C., 1993. "The Role of Question Order and Respondent Experience in Contingent-Valuation Studies," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages 80-99, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brekke, Kjell Arne & Kipperberg, Gorm & Nyborg, Karine, 2009. "Reluctant Recyclers: Social Interaction in Responsibility Ascription," Memorandum 16/2007, Oslo University, Department of Economics.
    2. Gorm Kipperberg & Douglas Larson, 2012. "Heterogeneous Preferences for Community Recycling Programs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(4), pages 577-604, December.
    3. Penn, Jerrod & Hu, Wuyang, 2019. "Cheap talk efficacy under potential and actual Hypothetical Bias: A meta-analysis," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 22-35.
    4. Berck, Peter & Sears, Molly & Taylor, Rebecca L.C. & Trachtman, Carly & Villas-Boas, Sofia B., 2024. "Reduce, reuse, redeem: Deposit-refund recycling programs in the presence of alternatives," Ecological Economics, Elsevier, vol. 217(C).
    5. Kjell Arne Brekke & Gorm Kipperberg & Karine Nyborg, 2010. "Social Interaction in Responsibility Ascription: The Case of Household Recycling," Land Economics, University of Wisconsin Press, vol. 86(4), pages 766-784.
    6. Lyssenko, Nikita & Martinez-Espineira, Roberto, 2009. "`Been there done that': Disentangling option value effects from user heterogeneity when valuing natural resources with a use component," MPRA Paper 21976, University Library of Munich, Germany, revised 08 Apr 2010.
    7. Viscusi, W. Kip & Huber, Joel & Bell, Jason, 2023. "Changes in household recycling behavior: Evidence from panel data," Ecological Economics, Elsevier, vol. 208(C).
    8. Loría, Luis Enrique & Watson, Verity & Kiso, Takahiko & Phimister, Euan, 2019. "Investigating users' preferences for Low Emission Buses: Experiences from Europe's largest hydrogen bus fleet," Journal of choice modelling, Elsevier, vol. 32(C), pages 1-1.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Viscusi, W. Kip & Huber, Joel & Bell, Jason, 2023. "Changes in household recycling behavior: Evidence from panel data," Ecological Economics, Elsevier, vol. 208(C).
    2. Marie Briguglio, 2016. "Household Cooperation In Waste Management: Initial Conditions And Intervention," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 497-525, July.
    3. Brandon C. Koford & Glenn C. Blomquist & David M. Hardesty & Kenneth R. Troske & Margaret Hughes & Fred Morgan, 2012. "Estimating Consumer Willingness to Supply and Willingness to Pay for Curbside Recycling," Land Economics, University of Wisconsin Press, vol. 88(4), pages 745-763.
    4. Gorm Kipperberg & Douglas Larson, 2012. "Heterogeneous Preferences for Community Recycling Programs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(4), pages 577-604, December.
    5. Hai-Lan Yang & Robert Innes, 2007. "Economic Incentives and Residential Waste Management in Taiwan: An Empirical Investigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(3), pages 489-519, July.
    6. Ferrara, Ida & Missios, Paul, 2011. "A Cross-Country Study of Household Waste Prevention and Recycling: Assessing the Effective of Policy Instruments," MPRA Paper 70811, University Library of Munich, Germany.
    7. David Aadland & Arthur J. Caplan, 2006. "Curbside recycling: Waste resource or waste of resources?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 25(4), pages 855-874.
    8. Takehiro Usui & Kenji Takeuchi, 2014. "Evaluating Unit-Based Pricing of Residential Solid Waste: A Panel Data Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(2), pages 245-271, June.
    9. 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.
    10. Don Fullerton & Andrew Leicester & Stephen Smith, 2008. "Environmental Taxes," NBER Working Papers 14197, National Bureau of Economic Research, Inc.
    11. Pfister, Naomi & Mathys, Nicole A., 2022. "Waste taxes at work: Evidence from the canton of Vaud in Switzerland," Ecological Economics, Elsevier, vol. 193(C).
    12. Heller, Marit H. & Vatn, Arild, 2017. "The divisive and disruptive effect of a weight-based waste fee," Ecological Economics, Elsevier, vol. 131(C), pages 275-285.
    13. Valente, Marica, 2023. "Policy evaluation of waste pricing programs using heterogeneous causal effect estimation," Journal of Environmental Economics and Management, Elsevier, vol. 117(C).
    14. Ankinée Kirakozian, 2016. "One Without The Other? Behavioural And Incentive Policies For Household Waste Management," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 526-551, July.
    15. Scott, Sue & Watson, Dorothy, 2006. "Introduction of Weight-Based Charges for Domestic Solid Waste Disposal," MPRA Paper 107713, University Library of Munich, Germany.
    16. Bueno, Matheus & Valente, Marica, 2019. "The effects of pricing waste generation: A synthetic control approach," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 274-285.
    17. Campbell, Benjamin & Khachatryan, Hayk & Behe, Bridget & Hall, Charles & Dennis, Jennifer, 2016. "Crunch the can or throw the bottle? Effect of “bottle deposit laws” and municipal recycling programs," Resources, Conservation & Recycling, Elsevier, vol. 106(C), pages 98-109.
    18. Ju-Chin Huang, & John M. Halstead, & Shanna B. Saunders, 2011. "Managing Municipal Solid Waste with Unit-Based Pricing: Policy Effects and Responsiveness to Pricing," Land Economics, University of Wisconsin Press, vol. 87(4), pages 645-660.
    19. D'Amato, Alessio & Mancinelli, Susanna & Zoli, Mariangela, 2016. "Complementarity vs substitutability in waste management behaviors," Ecological Economics, Elsevier, vol. 123(C), pages 84-94.
    20. 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, vol. 88(4), pages 710-744.

    More about this item

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:usu:wpaper:2004-15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John Gilbert (email available below). General contact details of provider: https://edirc.repec.org/data/edusuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.