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Cost savings in unit-based pricing of household waste: The case of The Netherlands

  • Dijkgraaf, E.
  • Gradus, R. H. J. M.

Using a panel data set for Dutch municipalities we estimate effects for weight-based, bag-based, frequency-based and volume-based pricing of household waste collection. Unit-based pricing shows to be effective in reducing solid and compostable and increasing recyclable waste. Pricing has no effect on the waste collected in surrounding municipalities (waste tourism). However, unit-based pricing may lead to illegal dumping. While empirical evidence is scarce, a social cost-benefit analysis shows that if the social valuation of illegal dumping is in line with the social costs for collecting and treating solid waste, the weight or bag-based systems are preferable.

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Article provided by Elsevier in its journal Resource and Energy Economics.

Volume (Year): 26 (2004)
Issue (Month): 4 (December)
Pages: 353-371

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Handle: RePEc:eee:resene:v:26:y:2004:i:4:p:353-371
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505569

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  1. Fullerton, Don & Kinnaman, Thomas C, 1996. "Household Responses to Pricing Garbage by the Bag," American Economic Review, American Economic Association, vol. 86(4), pages 971-84, September.
  2. James D. Reschovsky & Sarah E. Stone, 1994. "Market incentives to encourage household waste recycling: Paying for what you throw away," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 13(1), pages 120-139.
  3. Jenkins, Robin R. & Martinez, Salvador A. & Palmer, Karen & Podolsky, Michael J., 2003. "The determinants of household recycling: a material-specific analysis of recycling program features and unit pricing," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 294-318, March.
  4. Thomas C. Kinnaman & Don Fullerton, 1997. "Garbage and Recycling in Communities with Curbside Recycling and Unit-Based Pricing," NBER Working Papers 6021, National Bureau of Economic Research, Inc.
  5. G. Strathman & Anthony M. Rufolo & Gerard C. S. Mildner, 1995. "The Demand for Solid Waste Disposal," Land Economics, University of Wisconsin Press, vol. 71(1), pages 57-64.
  6. Thomas C. Kinnaman & Don Fullterton, 1999. "The Economics of Residential Solid Waste Management," NBER Working Papers 7326, National Bureau of Economic Research, Inc.
  7. 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.
  8. 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.
  9. Scott J. Callan & Janet M. Thomas, 1997. "The Impact of State and Local Policies on the Recycling Effort," Eastern Economic Journal, Eastern Economic Association, vol. 23(4), pages 411-423, Fall.
  10. Linderhof, Vincent & Kooreman, Peter & Allers, Maarten & Wiersma, Doede, 2001. "Weight-based pricing in the collection of household waste: the Oostzaan case," Resource and Energy Economics, Elsevier, vol. 23(4), pages 359-371, October.
  11. Kinnaman, Thomas C. & Fullerton, Don, 2000. "Garbage and Recycling with Endogenous Local Policy," Journal of Urban Economics, Elsevier, vol. 48(3), pages 419-442, November.
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