How a Fee Per-Unit Garbage Affects Aggregate Recycling in a Model with Heterogeneous Households
This paper develops a utility maximizing model of household choice among garbage disposal, recycling, and littering. The impact of a user fee for garbage collection is modelled for heterogeneous households with different preferences for recycling. The model explains (1) why some households participate in curbside recycling programs even in the absence of a user fee, (2) why other households do not participate, even in the presence of a user fee, and (3) why some households choose to litter when others do not. Household choices are aggregated to determine the effect of a user fee on the community-wide quantities of garbage, recycling, and litter. We show how an increase in the user fee can decrease aggregate recycling.
|Date of creation:||Oct 1994|
|Date of revision:|
|Publication status:||published as Public Economics and the Environment in an Imperfect World, ed. by A.L. Bovenberg and S. Crossen; Dordrecht, The Netherlands: Kluwer Academic Publishers (1995): 135-159.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
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NBER Working Papers
4374, National Bureau of Economic Research, Inc.
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