EVALUATING UNIT-BASED PRICING OF RESIDENTIAL SOLID WASTE: A PANEL DATA ANALYSIS

Takehiro Usui () and Kenji Takeuchi

No 1203, Discussion Papers from Graduate School of Economics, Kobe University

Abstract: 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.

Keywords: Unit-based pricing; Waste reduction; Recycling; Panel data analysis; Long-run effect (search for similar items in EconPapers)
JEL-codes: Q53 Q58 R20 (search for similar items in EconPapers)
Pages: 26pages
Date: 2012-03
New Economics Papers: this item is included in nep-env and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Evaluating Unit-Based Pricing of Residential Solid Waste: A Panel Data Analysis (2014)
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