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Analyzing Demand For Disposal And Recycling Services: A Systems Approach

Author

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  • Scott J. Callan

    (Department of Economics, Bentley College)

  • Janet M. Thomas

    (Department of Economics, Bentley College)

Abstract

Pricing municipal solid waste (MSW) services using a flat fee offers no incentive to conserve on disposal. This has prompted the use of unit pricing schemes, which should reduce disposal in accordance with demand theory and encourage alternatives such as recycling. Most studies estimate distinct demand equations for disposal and recycling, and none use a systems approach to simultaneous estimate them. To that end, this research estimates such a model, which also recognizes the endogeneity of policy variables. The results offer important policy insight and shed light on the effectiveness of unit pricing in reducing disposal and simultaneously encouraging recycling.

Suggested Citation

  • Scott J. Callan & Janet M. Thomas, 2006. "Analyzing Demand For Disposal And Recycling Services: A Systems Approach," Eastern Economic Journal, Eastern Economic Association, vol. 32(2), pages 221-240, Spring.
    • Handle: RePEc:eej:eeconj:v:32:y:2006:i:2:p:221-240
    as

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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume32/V32N2P221_240.pdf
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    References listed on IDEAS

    as
    1. Saltzman, Cynthia & Duggal, Vijaya G. & Williams, Mary L., 1993. "Income and the recycling effort: a maximization problem," Energy Economics, Elsevier, vol. 15(1), pages 33-38, January.
    2. Thomas C. Kinnaman & Don Fullerton, 2002. "Garbage and Recycling with Endogenous Local Policy," Chapters, in: Don Fullerton & Thomas C. Kinnaman (ed.), The Economics of Household Garbage and Recycling Behavior, chapter 6, pages 120-143, Edward Elgar Publishing.
    3. Don Fullerton & Thomas C. Kinnaman, 2002. "Household Responses to Pricing Garbage by the Bag," Chapters, in: Don Fullerton & Thomas C. Kinnaman (ed.), The Economics of Household Garbage and Recycling Behavior, chapter 4, pages 88-101, Edward Elgar Publishing.
    4. George L. Van Houtven & Glenn E. Morris, 1999. "Household Behavior under Alternative Pay-as-You-Throw Systems for Solid Waste Disposal," Land Economics, University of Wisconsin Press, vol. 75(4), pages 515-537.
    5. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    6. V. Kerry Smith, 1995. "Does education induce people to improve the environment?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 14(4), pages 599-604.
    7. Robin R. Jenkins, 1993. "The Economics Of Solid Waste Reduction," Books, Edward Elgar Publishing, number 248.
    8. Seonghoon Hong & Richard M. Adams, 1999. "Household Responses to Price Incentives for Recycling: Some Further Evidence," Land Economics, University of Wisconsin Press, vol. 75(4), pages 505-514.
    9. Scott J. Callan & Janet M. Thomas, 1997. "The Impact of State and Local Policies on the Recycling Effort," Eastern Economic Journal, Eastern Economic Association, vol. 23(4), pages 411-423, Fall.
    10. Deborah Vaughn Nestor & Michael J. Podolsky, 1998. "Assessing Incentive‐Based Environmental Policies For Reducing Household Waste Disposal," Contemporary Economic Policy, Western Economic Association International, vol. 16(4), pages 401-411, October.
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