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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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    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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