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Evaluating Unit-Based Pricing Of Residential Solid Waste: A Panel Data Analysis

  • Takehiro Usui

    ()

    (Faculty of Economics,Soka University)

  • Kenji Takeuchi

    ()

    (Graduate School of Economics,Kobe University)

Municipalities introduced unit-based pricing (UBP) with the aim of achieving a decrease in household waste generation and for the replacement of unsorted waste with recycling. Although many studies have shown that UBP has a short-run effect on recycling, few works have tackled the long-run effect on waste generation and recycling. By using panel data for 665 Japanese cities over 8 years, we examine the long-run effect of UBP on waste generation and recycling. The estimation results in waste generation suggest that there is a rebound effect, though a small one. We confirm that the effect of UBP on recycling sustains for the long run. We also find that the short- and long-run responses to an economic incentive for recycling activities differ with income groups. Recycling among the high-income group has not been promoted by implementation of UBP, but people in that group are willing to participate in recycling without an economic incentive. In contrast, recycling activity within the low-income group is strongly motivated by UBP for many years.

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File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2012/1203.pdf
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Paper provided by Graduate School of Economics, Kobe University in its series Discussion Papers with number 1203.

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Length: 26pages
Date of creation: Mar 2012
Date of revision:
Handle: RePEc:koe:wpaper:1203
Contact details of provider: Web page: http://www.econ.kobe-u.ac.jp
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