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Estimating the effect of unit-based pricing in the presence of sample selection bias under Japanese Recycling Law

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  • Usui, Takehiro

Abstract

In Japan the Containers and Packaging Recycling Law requires the collection of recyclable packaging and containers. In particular, municipalities are required to collect and store the containers and packaging that households have separated from solid waste. However, the law has non-binding standards, and some municipalities do not provide collection services for these recyclables. When estimating the substitution effect of unit-based pricing, i.e. the substitution of recyclables for solid waste, missing data for those municipalities that do not provide a collection service will lead to a truncated sample and, therefore, a sample selection bias in the estimators. We use a Type 2 Tobit model to correct a bias which arises because of missing data. This model provides a consistent estimator, and shows that a higher price for bags and tags increases recycling by households under the unit-based pricing systems introduced by municipalities.

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  • Usui, Takehiro, 2008. "Estimating the effect of unit-based pricing in the presence of sample selection bias under Japanese Recycling Law," Ecological Economics, Elsevier, vol. 66(2-3), pages 282-288, June.
    • Handle: RePEc:eee:ecolec:v:66:y:2008:i:2-3:p:282-288
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    2. Takehiro Usui & Kenji Takeuchi, 2014. "Evaluating Unit-Based Pricing of Residential Solid Waste: A Panel Data Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(2), pages 245-271, June.
    3. Elbert Dijkgraaf & Raymond Gradus, 2014. "The Effectiveness of Dutch Municipal Recycling Policies," Tinbergen Institute Discussion Papers 14-155/VI, Tinbergen Institute.
    4. Degli Antoni, Giacomo & Vittucci Marzetti, Giuseppe, 2019. "Recycling and Waste Generation: An Estimate of the Source Reduction Effect of Recycling Programs," Ecological Economics, Elsevier, vol. 161(C), pages 321-329.
    5. Matteo Picchio, 2021. "Microchip bags and waste sorting," Working Papers 449, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    6. Bueno, Matheus & Valente, Marica, 2019. "The effects of pricing waste generation: A synthetic control approach," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 274-285.
    7. Alacevich, Caterina & Bonev, Petyo & Söderberg, Magnus, 2021. "Pro-environmental interventions and behavioral spillovers: Evidence from organic waste sorting in Sweden," Journal of Environmental Economics and Management, Elsevier, vol. 108(C).
    8. Matteo Picchio, 2023. "Microchipped bags and waste sorting," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 25(1), pages 1-30, January.
    9. Sabinne Lee & Kwangho Jung, 2017. "Exploring Effective Incentive Design to Reduce Food Waste: A Natural Experiment of Policy Change from Community Based Charge to RFID Based Weight Charge," Sustainability, MDPI, vol. 9(11), pages 1-17, November.

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