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Household Responses to Price Incentives for Recycling: Some Further Evidence

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  • Seonghoon Hong
  • Richard M. Adams

Abstract

This paper investigates the role of waste disposal service fees and household characteristics in determining recycling rates and waste generation. Using individual household data from Portland, Oregon, we model a multistage household decision process regarding waste generation and recycling effort under a block pricing system, including the choice of container size and reduced-form demand equations for recyclables, non-recyclables, and recycling rate. The choice of container size is not affected by the price of waste disposal services, but within a given container size, households respond to a price increase by increasing recycling to avoid charges for waste generation above contracted volumes.

Suggested Citation

  • 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.
  • Handle: RePEc:uwp:landec:v:75:y:1999:i:4:p:505-514
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    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. 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.
    3. W. Kip Viscusi & Joel Huber & Jason Bell & Caroline Cecot, 2013. "Discontinuous Behavioral Responses to Recycling Laws and Plastic Water Bottle Deposits," American Law and Economics Review, Oxford University Press, vol. 15(1), pages 110-155.
    4. Bohara, Alok K. & Caplan, Arthur J. & Grijalva, Therese, 2007. "The effect of experience and quantity-based pricing on the valuation of a curbside recycling program," Ecological Economics, Elsevier, vol. 64(2), pages 433-443, December.
    5. Frank T. Denton & Dean C. Mountain & Byron G. Spencer, 2003. "Energy Demand with Declining Rate Schedules: An Econometric Model for the U.S. Commercial Sector," Land Economics, University of Wisconsin Press, vol. 79(1), pages 86-105.
    6. Nick Johnstone & Julien Labonne, 2004. "Generation of Household Solid Waste in OECD Countries: An Empirical Analysis Using Macroeconomic Data," Land Economics, University of Wisconsin Press, vol. 80(4).
    7. Ju-Chin Huang, & John M. Halstead, & Shanna B. Saunders, 2011. "Managing Municipal Solid Waste with Unit-Based Pricing: Policy Effects and Responsiveness to Pricing," Land Economics, University of Wisconsin Press, vol. 87(4), pages 645-660.
    8. Heller, Marit H. & Vatn, Arild, 2017. "The divisive and disruptive effect of a weight-based waste fee," Ecological Economics, Elsevier, vol. 131(C), pages 275-285.
    9. 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.
    10. Timothy K. M. Beatty & Peter Berck & Jay P. Shimshack, 2007. "Curbside Recycling In The Presence Of Alternatives," Economic Inquiry, Western Economic Association International, vol. 45(4), pages 739-755, October.
    11. Usui, Takehiro, 2008. "Estimating the effect of unit-based pricing in the presence of sample selection bias under Japanese Recycling Law," Ecological Economics, Elsevier, vol. 66(2-3), pages 282-288, June.
    12. Ida Ferrara & Paul Missios, 2012. "A Cross-Country Study of Household Waste Prevention and Recycling: Assessing the Effectiveness of Policy Instruments," Land Economics, University of Wisconsin Press, vol. 88(4), pages 710-744.
    13. 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.
    14. 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.
    15. Bevin Ashenmiller, 2006. "The Effect of Income on Recycling Behavior in the Presence of a Bottle Law: New Empirical Results," Occidental Economics Working Papers 10, Occidental College, Department of Economics, revised Jan 2006.
    16. Brandon C. Koford & Glenn C. Blomquist & David M. Hardesty & Kenneth R. Troske, 2012. "Estimating Consumer Willingness to Supply and Willingness to Pay for Curbside Recycling," Land Economics, University of Wisconsin Press, vol. 88(4), pages 745-763.
    17. Palmer, Karen & Martinez, Salvador & Jenkins, Robin & Podolsky, Michael, 1999. "The Determinants of Household Recycling: A Material Specific Analysis of Unit Pricing and Recycling Program Attributes," Discussion Papers dp-99-41-rev, Resources For the Future.
    18. 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.
    19. van den Bergh, Jeroen C.J.M., 2008. "Environmental regulation of households: An empirical review of economic and psychological factors," Ecological Economics, Elsevier, vol. 66(4), pages 559-574, July.
    20. Caplan, Arthur J. & Grijalva, Therese C. & Jakus, Paul M., 2002. "Waste not or want not? A contingent ranking analysis of curbside waste disposal options," Ecological Economics, Elsevier, vol. 43(2-3), pages 185-197, December.
    21. Matheus Bueno & Marica Valente, 2018. "The Effects of Pricing Waste Generation: A Synthetic Control Approach," Discussion Papers of DIW Berlin 1737, DIW Berlin, German Institute for Economic Research.
    22. Paul Missios & Ida Ferrara, 2016. "Reduce, Reuse or Recycle? Household Decisions over Waste Prevention and Recycling," Working Papers 065, Ryerson University, Department of Economics.
    23. Don Fullerton & Andrew Leicester & Stephen Smith, 2008. "Environmental Taxes," NBER Working Papers 14197, National Bureau of Economic Research, Inc.
    24. 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.
    25. Ferrara, Ida & Missios, Paul, 2011. "A Cross-Country Study of Household Waste Prevention and Recycling: Assessing the Effective of Policy Instruments," MPRA Paper 70811, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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