PRICE AND SUBSTITUTION IN RESIDENTIAL SOLID WASTE
Paul Isely and
Aaron Lowen ()
Contemporary Economic Policy, 2007, vol. 25, issue 3, 433-443
Many per‐unit curbside recycling and garbage collection pricing systems were implemented in the 1990s. A detailed data set is used to estimate the effect of an increase in the per‐unit price change for a long‐running pricing system across time in one city. A fixed‐effects regression controls for collection district and explanatory variables including weather, time, and employment changes. The elasticity estimate is within the range of previous work but with a higher cross‐price elasticity to recycling. This shift to recycling results in significant financial benefits to the city and a small decrease in social welfare. (JEL Q5, Q53)
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