Reducing Waste, Changing Habits: The Effect of U.S. Organics Diversion Programs on Food Purchases

Jackson Somers, Mengjie Li and Sulin Chowdhury

No 360757, 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO from Agricultural and Applied Economics Association

Abstract: Food waste contributes substantially to methane emissions, and diverting it from landfills yields significant environmental benefits. This study examines the impact of residential curbside organics diversion programs, which redirect food waste from landfills to composting, on household food purchases. Using NielsenIQ Consumer Panel Data and a difference in-differences framework, we find that voluntary programs increase monthly household food expenditures by $3, while mandatory programs that require residents to separate organics lead to an additional $5 increase. The total effect of $8 under mandatory programs represents 8.2% of average monthly food spending. These results indicate a notable rebound effect: while diversion programs reduce landfill emissions, the unintended increase in food demand leads to an estimated $26 billion rise in food loss and waste nationwide and nearly $714 million in additional greenhouse gas damages. The findings highlight the need to account for behavioral responses in environmental policy design.

Keywords: Community/Rural/Urban; Development (search for similar items in EconPapers)
Pages: 22
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea25:360757

DOI: 10.22004/ag.econ.360757

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