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Price And Substitution In Residential Solid Waste

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  • PAUL ISELY
  • AARON LOWEN

Abstract

Many per‐unit curbside recycling and garbage collection pricing systems were implemented in the 1990s. A detailed data set is used to estimate the effect of an increase in the per‐unit price change for a long‐running pricing system across time in one city. A fixed‐effects regression controls for collection district and explanatory variables including weather, time, and employment changes. The elasticity estimate is within the range of previous work but with a higher cross‐price elasticity to recycling. This shift to recycling results in significant financial benefits to the city and a small decrease in social welfare. (JEL Q5, Q53)

Suggested Citation

  • Paul Isely & Aaron Lowen, 2007. "Price And Substitution In Residential Solid Waste," Contemporary Economic Policy, Western Economic Association International, vol. 25(3), pages 433-443, July.
    • Handle: RePEc:bla:coecpo:v:25:y:2007:i:3:p:433-443
    DOI: 10.1111/j.1465-7287.2007.00048.x
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Richardson, Robert A. & Havlicek, Joseph, Jr., 1974. "On Analysis Of Seasonal Household Waste Generation," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 6(2), pages 1-13, December.
    4. Martin Feldstein, 1999. "Tax Avoidance And The Deadweight Loss Of The Income Tax," The Review of Economics and Statistics, MIT Press, vol. 81(4), pages 674-680, November.
    5. Richardson, Robert A. & Havlicek, Joseph, 1974. "An Analysis of Seasonal Household Waste Generation," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 6(2), pages 143-155, December.
    6. Peter A. Groothuis, 2005. "Benefit Transfer: A Comparison of Approaches," Growth and Change, Wiley Blackwell, vol. 36(4), pages 551-564, September.
    7. 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.
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    Cited by:

    1. Kinnaman, Thomas C., 2010. "Optimal Solid Waste Tax Policy With Centralized Recycling," National Tax Journal, National Tax Association;National Tax Journal, vol. 63(2), pages 237-251, June.
    2. 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.
    3. D’Amato, Alessio & Mazzanti, Massimiliano & Nicolli, Francesco, 2015. "Waste and organized crime in regional environments," Resource and Energy Economics, Elsevier, vol. 41(C), pages 185-201.
    4. 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.
    5. Bel, Germà & Gradus, Raymond, 2016. "Effects of unit-based pricing on household waste collection demand: A meta-regression analysis," Resource and Energy Economics, Elsevier, vol. 44(C), pages 169-182.
    6. Slavik, Jan & Pavel, Jan, 2013. "Do the variable charges really increase the effectiveness and economy of waste management? A case study of the Czech Republic," Resources, Conservation & Recycling, Elsevier, vol. 70(C), pages 68-77.

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    More about this item

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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