Pay as You Throw Threshold Tariff: Evidence on the Incentive to Recycle

Rizzo Leonzio () and Secomandi Riccardo ()
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Rizzo Leonzio: University of Ferrara, Ferrara, Italy
Secomandi Riccardo: University of Ferrara, Via Voltapaletto 11, Ferrara, Italy

The B.E. Journal of Economic Analysis & Policy, 2024, vol. 24, issue 2, 361-395

Abstract: We study the impact of the introduction of a pay as you throw tariff in Ferrara which presented a low status-quo level of waste recycling. We find that it increased the waste recycling share by 40 % points and decreased the total waste per capita by 30 % points. Our dataset allows the split of the overall effect on waste recycling, finding that 63 % of recycling is due to organic material and 37 % to multimaterial (paper, glass, and plastic). This result suggests that packaging does not constitute the major waste recycling collection. Moreover, we find both an increase in waste recycling and a decrease in total waste, contrary to other case studies with a higher starting level of waste recycling. This leads to the important conclusion that pricing waste is effective in reducing pollution if the waste recycling level is sufficiently low.

Keywords: pay as you throw; municipal waste management; synthetic control method; incentive; waste recycling (search for similar items in EconPapers)
JEL-codes: D01 D78 Q53 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1515/bejeap-2022-0448

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