The Effects of Pricing Waste Generation: A Synthetic Control Approach
Matheus Bueno and
No 1737, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research
To internalize pollution externalities into household waste generation, Unit Pricing Systems (UPS) have been adopted worldwide. This paper evaluates the causal effects of a UPS on the disposal of municipal solid waste in Trento, Italy. To account for policy endogeneity due to unobservables, we employ the synthetic control method on a unique panel of monthly waste generation. Our results show that the policy was effective, with a significant decrease of the priced waste stream,unsorted waste, by 37.5%. This effect seems to be largely driven by behavioral changes towards waste avoidance (-8,6%) and a minor increase in recycling (+6,1%).
Keywords: Waste generation; unit pricing; synthetic controls (search for similar items in EconPapers)
JEL-codes: D01 C21 Q53 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwwpp:dp1737
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