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Waste Management and Household Effort: Toward an Enhanced ADF Policy

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  • Stéphanie Lemaitre
  • Hubert Stahn

Abstract

Advance Disposal Fees (ADF) are quite popular in waste management policies, but they discourage any waste reduction effort at the household level. We propose a tiered ADF policy that enhances this system by giving households the possibility to sign a waste reduction contract in return for a lower fee. These contracts satisfy incentive, budget-balancing and participation constraints. For these feasible contracts, we show that the enriched ADF policy is welfare improving and always induces a waste reduction effort.

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  • Stéphanie Lemaitre & Hubert Stahn, 2012. "Waste Management and Household Effort: Toward an Enhanced ADF Policy," Annals of Economics and Statistics, GENES, issue 107-108, pages 133-152.
  • Handle: RePEc:adr:anecst:y:2012:i:107-108:p:133-152
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