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Effects of unit-based pricing on the waste collection demand: a meta-regression analysis

Germà Bel () and Raymond Gradus ()

No 201420, IREA Working Papers from University of Barcelona, Research Institute of Applied Economics

Abstract: We perform a meta-analysis of 21 studies that estimate the elasticity of the price of waste collection demand upon waste quantities, a prior literature review having revealed that the price elasticity differs markedly. Based on a meta-regression with a total of 65 observations, we find no indication that municipal data give higher estimates for price elasticities than those associated with household data. Furthermore, there is no evidence that treating prices as exogenous underestimates the price elasticity. We find that much of the variation can be explained by sample size, the use of a weight-based as opposed to a volume-based pricing system, and the pricing of compostable waste. We also show that price elasticities determined in the USA and point estimations of elasticities are more elastic, but these effects are not robust to the changing of model specifications. Finally, our tests show that there is no evidence of publication bias while there is some evidence of the existence of genuine empirical effect.

Keywords: unit-based pricing; elasticities; meta-analysis JEL classification: H23; Q52; Q53 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2014-06, Revised 2014-06
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