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Analyzing Demand For Disposal And Recycling Services: A Systems Approach

  • Scott J. Callan

    (Department of Economics, Bentley College)

  • Janet M. Thomas

    ()

    (Department of Economics, Bentley College)

Registered author(s):

    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.

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    File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume32/V32N2P221_240.pdf
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    Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

    Volume (Year): 32 (2006)
    Issue (Month): 2 (Spring)
    Pages: 221-240

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    Handle: RePEc:eej:eeconj:v:32:y:2006:i:2:p:221-240
    Contact details of provider: Postal: c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA
    Phone: (201) 684-7346
    Web page: http://www.ramapo.edu/eea/journal.html
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    1. 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.
    2. 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.
    3. 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.
    4. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November.
    5. 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.
    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. 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.
    8. 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.
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