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Analyzing Demand For Disposal And Recycling Services: A Systems Approach

Author

Listed:
  • Scott J. Callan

    (Department of Economics, Bentley College)

  • Janet M. Thomas

    () (Department of Economics, Bentley College)

Abstract

Pricing municipal solid waste (MSW) services using a flat fee offers no incentive to conserve on disposal. This has prompted the use of unit pricing schemes, which should reduce disposal in accordance with demand theory and encourage alternatives such as recycling. Most studies estimate distinct demand equations for disposal and recycling, and none use a systems approach to simultaneous estimate them. To that end, this research estimates such a model, which also recognizes the endogeneity of policy variables. The results offer important policy insight and shed light on the effectiveness of unit pricing in reducing disposal and simultaneously encouraging recycling.

Suggested Citation

  • Scott J. Callan & Janet M. Thomas, 2006. "Analyzing Demand For Disposal And Recycling Services: A Systems Approach," Eastern Economic Journal, Eastern Economic Association, vol. 32(2), pages 221-240, Spring.
  • Handle: RePEc:eej:eeconj:v:32:y:2006:i:2:p:221-240
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume32/V32N2P221_240.pdf
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    References listed on IDEAS

    as
    1. Saltzman, Cynthia & Duggal, Vijaya G. & Williams, Mary L., 1993. "Income and the recycling effort: a maximization problem," Energy Economics, Elsevier, vol. 15(1), pages 33-38, January.
    2. 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.
    3. Fullerton, Don & Kinnaman, Thomas C, 1996. "Household Responses to Pricing Garbage by the Bag," American Economic Review, American Economic Association, vol. 86(4), pages 971-984, September.
    4. 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.
    5. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
    6. V. Kerry Smith, 1995. "Does education induce people to improve the environment?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 14(4), pages 599-604.
    7. Seonghoon Hong & Richard M. Adams, 1999. "Household Responses to Price Incentives for Recycling: Some Further Evidence," Land Economics, University of Wisconsin Press, vol. 75(4), pages 505-514.
    8. Deborah Vaughn Nestor & Michael J. Podolsky, 1998. "Assessing Incentive-Based Environmental Policies For Reducing Household Waste Disposal," Contemporary Economic Policy, Western Economic Association International, vol. 16(4), pages 401-411, October.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Takehiro Usui & Kenji Takeuchi, 2014. "Evaluating Unit-Based Pricing of Residential Solid Waste: A Panel Data Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(2), pages 245-271, June.
    2. Abbott, Andrew & Nandeibam, Shasikanta & O'Shea, Lucy, 2013. "Recycling: Social norms and warm-glow revisited," Ecological Economics, Elsevier, vol. 90(C), pages 10-18.
    3. Maarten A. Allers & Corine Hoeben, 2010. "Effects of Unit-Based Garbage Pricing: A Differences-in-Differences Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(3), pages 405-428, March.
    4. Abbott, Andrew & Nandeibam, Shasikanta & O'Shea, Lucy, 2017. "The Displacement Effect of Convenience: The Case of Recycling," Ecological Economics, Elsevier, vol. 136(C), pages 159-168.
    5. Thiyagarajah, Meena & Bi, Xiang & VanSickle, John. J, 2016. "Effectiveness of Recycling Policy of Florida," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 236105, Agricultural and Applied Economics Association.
    6. Houévoh Amandine R. Gnonlonfin, 2016. "An evaluation of French municipal solid waste pricing system," Working Papers 2016.18, FAERE - French Association of Environmental and Resource Economists.
    7. Chankrajang, Thanyaporn & Muttarak, Raya, 2017. "Green Returns to Education: Does Schooling Contribute to Pro-Environmental Behaviours? Evidence from Thailand," Ecological Economics, Elsevier, vol. 131(C), pages 434-448.
    8. 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.
    9. Meyer, Andrew, 2015. "Does education increase pro-environmental behavior? Evidence from Europe," Ecological Economics, Elsevier, vol. 116(C), pages 108-121.
    10. Abbott, Andrew & Nandeibam, Shasikanta & O'Shea, Lucy, 2011. "Explaining the variation in household recycling rates across the UK," Ecological Economics, Elsevier, vol. 70(11), pages 2214-2223, September.
    11. Massimiliano Mazzanti & Roberto Zoboli, 2009. "Municipal Waste Kuznets Curves: Evidence on Socio-Economic Drivers and Policy Effectiveness from the EU," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(2), pages 203-230, October.
    12. 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.
    13. repec:spr:lsprsc:v:10:y:2017:i:3:d:10.1007_s12076-017-0188-8 is not listed on IDEAS

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