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Differential Provision of Solid Waste Collection Services in the Presence of Heterogeneous Households

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  • Ida Ferrara

Abstract

A model of household refuse production is presented in which individuals differ in their distaste for the waste stock and the supply of waste collection services is continuous in pick-up frequency. The inclusion of pick-up frequency into household solid waste management analyses has already been shown to have policy implications. In fact, even in the absence of the waste stock externality, a system of uniform consumption taxes and legal (or curbside) disposal and recycling subsidies has been found to be necessary (and sufficient) to induce households to socially optimally allocate their resources when illegal disposal (or simply dumping) incentives exist but a per unit punishment system for dumping is lacking. This policy is here concluded to be no longer feasible; instead, a system of differential consumption taxes and recycling subsidies and uniform legal disposal subsidies is found to be optimal (but possibly nonimplementable). In the presence of heterogeneous households, which are however identifiable on the basis of their relative location to the landfill site, an optimal and implementable policy is then shown to require a differential provision of collection services. Copyright Kluwer Academic Publishers 2003

Suggested Citation

  • Ida Ferrara, 2003. "Differential Provision of Solid Waste Collection Services in the Presence of Heterogeneous Households," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(2), pages 211-226, October.
  • Handle: RePEc:kap:enreec:v:26:y:2003:i:2:p:211-226
    DOI: 10.1023/A:1026354615511
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    References listed on IDEAS

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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 971-984, September.
    2. Ida Ferrara, 2011. "Illegal Disposal And Waste Collection Frequency," Pacific Economic Review, Wiley Blackwell, vol. 16(2), pages 255-266, May.
    3. Said Atri & Thomas Schellberg, 1995. "Efficient Management of Household Solid Waste: a General Equilibrium Model," Public Finance Review, , vol. 23(1), pages 3-39, January.
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    Cited by:

    1. Ida Ferrara, 2008. "Illegal Disposal of Commercial Solid Waste: A Dynamic Analysis," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 36(2), pages 211-232, June.

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