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Optimal Solid Waste Tax Policy With Centralized Recycling

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  • Kinnaman, Thomas C.

Abstract

Economic models have demonstrated the efficiency of curbside collection taxes. This paper demonstrates that such efficiencies disappear in economies with centralized recycling options — where recyclable materials can be removed from the waste stream either by households or at a centralized recycling facility. In such economies, a curbside garbage tax not only fails to encourage the centralized recycler to internalize the external costs of waste disposal, but introduces inefficiencies to the costminimizing mix of household and centralized recycling efforts. The optimal waste policy is a tax assessed further downstream at the landfill rather than at the curb.

Suggested Citation

  • Kinnaman, Thomas C., 2010. "Optimal Solid Waste Tax Policy With Centralized Recycling," National Tax Journal, National Tax Association;National Tax Journal, vol. 63(2), pages 237-251, June.
  • Handle: RePEc:ntj:journl:v:63:y:2010:i:2:p:237-51
    DOI: 10.17310/ntj.2010.2.03
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    References listed on IDEAS

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    1. Thomas C. Kinnaman, 2006. "Policy Watch: Examining the Justification for Residential Recycling," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 219-232, Fall.
    2. Don Fullerton & Thomas C. Kinnaman, 2002. "Household Responses to Pricing Garbage by the Bag," Chapters, in: Don Fullerton & Thomas C. Kinnaman (ed.), The Economics of Household Garbage and Recycling Behavior, chapter 4, pages 88-101, Edward Elgar Publishing.
    3. Don Fullerton & Thomas C. Kinnaman, 2002. "Garbage, Recycling, and Illicit Burning or Dumping," Chapters, in: Don Fullerton & Thomas C. Kinnaman (ed.), The Economics of Household Garbage and Recycling Behavior, chapter 2, pages 49-62, Edward Elgar Publishing.
    4. Paul Isely & Aaron Lowen, 2007. "Price And Substitution In Residential Solid Waste," Contemporary Economic Policy, Western Economic Association International, vol. 25(3), pages 433-443, July.
    5. Geum-Soo Kim & Young-Jae Chang & David Kelleher, 2008. "Unit pricing of municipal solid waste and illegal dumping: an empirical analysis of Korean experience," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 9(3), pages 167-176, September.
    6. Ian M. Dobbs, 1991. "Litter and Waste Management: Disposal Taxes versus User Charges," Canadian Journal of Economics, Canadian Economics Association, vol. 24(1), pages 221-227, February.
    7. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
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    Cited by:

    1. Antonio Garofalo & Rosalia Castellano & Massimiliano Agovino & Gennaro Punzo & Gaetano Musella, 2019. "How Far is Campania from the Best-Performing Region in Italy? A Territorial-Divide Analysis of Separate Waste Collection," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(2), pages 667-688, April.
    2. Elena C. Prenovitz & Peter K. Hazlett & Chandler S. Reilly, 2023. "Can Markets Improve Recycling Performance? A Cross-Country Regression Analysis and Case Studies," Sustainability, MDPI, vol. 15(6), pages 1-18, March.
    3. 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.
    4. Massimiliano Agovino & Maria Ferrara & Katia Marchesano & Antonio Garofalo, 2020. "The separate collection of recyclable waste materials as a flywheel for the circular economy: the role of institutional quality and socio-economic factors," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(2), pages 659-681, July.

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