The Effect of Bottle Laws on Income: New Empirical Results
Eleven US states have "bottle laws," deposit-refund programs that combine a consumption tax with a recycling rebate. When states set the bottle deposit low enough it becomes a tax on high wage earners, for whom the opportunity cost of their time prevents them from returning containers for their deposit. However, this bottle deposit will still be high enough that harvesting recyclables provides employment for low wage earners. Using individual data on observed cash recycling behavior, this paper shows that an unintended consequence of bottle laws is that they have the potential to increase the incomes of very low wage workers.
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Volume (Year): 101 (2011)
Issue (Month): 3 (May)
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"Household Responses for Pricing Garbage by the Bag,"
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- Bevin Ashenmiller, 2010. "Externalities from Recycling Laws: Evidence from Crime Rates," American Law and Economics Review, Oxford University Press, vol. 12(1), pages 245-261.
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