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Pay as You Throw Threshold Tariff: Evidence on the Incentive to Recycle

Author

Listed:
  • Rizzo Leonzio

    (University of Ferrara, Ferrara, Italy)

  • Secomandi Riccardo

    (University of Ferrara, Via Voltapaletto 11, Ferrara, Italy)

Abstract

We study the impact of the introduction of a pay as you throw tariff in Ferrara which presented a low status-quo level of waste recycling. We find that it increased the waste recycling share by 40 % points and decreased the total waste per capita by 30 % points. Our dataset allows the split of the overall effect on waste recycling, finding that 63 % of recycling is due to organic material and 37 % to multimaterial (paper, glass, and plastic). This result suggests that packaging does not constitute the major waste recycling collection. Moreover, we find both an increase in waste recycling and a decrease in total waste, contrary to other case studies with a higher starting level of waste recycling. This leads to the important conclusion that pricing waste is effective in reducing pollution if the waste recycling level is sufficiently low.

Suggested Citation

  • Rizzo Leonzio & Secomandi Riccardo, 2024. "Pay as You Throw Threshold Tariff: Evidence on the Incentive to Recycle," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 24(2), pages 361-395, April.
    • Handle: RePEc:bpj:bejeap:v:24:y:2024:i:2:p:361-395:n:2
    DOI: 10.1515/bejeap-2022-0448
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    More about this item

    Keywords

    pay as you throw; municipal waste management; synthetic control method; incentive; waste recycling; D01; D78; Q53;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • 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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