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Waste Management and Household Effort: Toward an Enhanced ADF Policy

Stéphanie Lemaitre and Hubert Stahn

Annals of Economics and Statistics, 2012, issue 107-108, 133-152

Abstract: Advance Disposal Fees (ADF) are quite popular in waste management policies, but they discourage any waste reduction effort at the household level. We propose a tiered ADF policy that enhances this system by giving households the possibility to sign a waste reduction contract in return for a lower fee. These contracts satisfy incentive, budget-balancing and participation constraints. For these feasible contracts, we show that the enriched ADF policy is welfare improving and always induces a waste reduction effort.

Date: 2012
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Working Paper: Waste management and household effort: toward an enhanced ADF policy (2009) Downloads
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