Price Pass-Through of Austria’s Single-Use Plastics Producer Charges: Evidence from Retail Offer Spells

Felix Reichel

MPRA Paper from University Library of Munich, Germany

Abstract: Single-use plastics (SUPs) impose substantial environmental costs. Following Directive (EU) 2019/904, Austria introduced producer charges and mandatory participation in collection and recycling systems. This paper exploits a monthly aggregated and disaggregated panel of retail offer spells drawn from a price-comparison platform to estimate the extent to which compliance costs pass through to posted online prices in Austria. The treated sample comprises keyword-matched SUP products—balloons, to-go cups, wet wipes, plastic bags, food containers, tobacco-filter items, beverage bottles, and plastic wraps—observed alongside a control group of non-SUP listings over 2020–2024. A two-way fixed-effects (TWFE) specification places the average post-treatment price increase at approximately 4.1 percent. A sequential TWFE model that disaggregates the administrative reporting phase (from March 2023) from the payment-due phase (from March 2024) reveals that the larger adjustment occurs during the earlier reporting stage, with a reporting-only effect of approximately 8.1 percent and an incremental payment-phase effect of 5.6 percent. For balloons—a category subject to pronounced regulatory fee exposure—event-study estimates exceed 50 percent in the months immediately following the initial payment date and remain elevated throughout most of the post-treatment window. Taken together, these findings indicate that Austrian online retailers began adjusting prices in advance of fee-payment deadlines, a pattern consistent with anticipatory pass-through of expected compliance costs rather than a discrete response to realized payments. As the data contain price observations but not quantity data, the analysis speaks to price incidence and does not extend to consumption or environmental outcomes.

Keywords: single-use plastics; environmental policy; extended producer responsibility; price pass-through; event study; difference in differences; retail prices; Austria (search for similar items in EconPapers)
JEL-codes: C23 D12 H23 Q53 Q58 (search for similar items in EconPapers)
Date: 2026-05-28
References: Add references at CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/129303/1/MPRA_paper_129303.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:129303

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().