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Evaluating Unit-Based Pricing of Residential Solid Waste: A Panel Data Analysis

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  • Takehiro Usui
  • Kenji Takeuchi

Abstract

Municipalities introduced unit-based pricing (UBP) with the aim of achieving a decrease in household waste generation and for the replacement of unsorted waste with recycling. Although many studies have shown that UBP has a short-run effect on recycling, few works have tackled the long-run effect on waste generation and recycling. By using panel data for 665 Japanese cities over 8 years, we examine the long-run effect of UBP on waste generation and recycling. The estimation results in waste generation suggest that there is a rebound effect, though a small one. We confirm that the effect of UBP on recycling sustains for the long run. We also find that the short- and long-run responses to an economic incentive for recycling activities differ with income groups. Recycling among the high-income group has not been promoted by implementation of UBP, but people in that group are willing to participate in recycling without an economic incentive. In contrast, recycling activity within the low-income group is strongly motivated by UBP for many years. Copyright Springer Science+Business Media Dordrecht 2014

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  • 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.
    • Handle: RePEc:kap:enreec:v:58:y:2014:i:2:p:245-271
    DOI: 10.1007/s10640-013-9702-7
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    2. Leonzio Rizzo & Riccardo Secomandi, 2020. "Pay as you throw: evidence on the incentive to recycle," Working papers 88, Società Italiana di Economia Pubblica.
    3. Ek, Claes & Söderberg, Magnus, 2024. "Norm-based feedback on household waste: Large-scale field experiments in two Swedish municipalities," Journal of Public Economics, Elsevier, vol. 238(C).
    4. 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.
    5. Bel, Germà & Gradus, Raymond, 2016. "Effects of unit-based pricing on household waste collection demand: A meta-regression analysis," Resource and Energy Economics, Elsevier, vol. 44(C), pages 169-182.
    6. Tobias Erhardt, 2019. "Garbage In and Garbage Out? On Waste Havens in Switzerland," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(1), pages 251-282, May.
    7. Taguchi, Hiroyuki, 2024. "Assessing Effects of Unit-Based Pricing on Household Waste Reduction Focusing on COVID-19 Period in Japan," MPRA Paper 122779, University Library of Munich, Germany.
    8. Elbert Dijkgraaf & Raymond Gradus, 2015. "Efficiency Effects of Unit-Based Pricing Systems and Institutional Choices of Waste Collection," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 61(4), pages 641-658, August.
    9. Di Foggia, Giacomo & Beccarello, Massimo, 2023. "Designing circular economy-compliant municipal solid waste management charging schemes," Utilities Policy, Elsevier, vol. 81(C).
    10. Elbert Dijkgraaf & Raymond Gradus, 2017. "An EU Recycling Target: What Does the Dutch Evidence Tell Us?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 501-526, November.
    11. Houévoh Amandine R. Gnonlonfin, 2016. "An evaluation of French municipal solid waste pricing system," Working Papers 2016.18, FAERE - French Association of Environmental and Resource Economists.
    12. 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.
    13. Francesca Montevecchi, 2016. "Policy Mixes to Achieve Absolute Decoupling: A Case Study of Municipal Waste Management," Sustainability, MDPI, vol. 8(5), pages 1-22, May.
    14. Germà Bel & Raymond Gradus, 2014. "“Effects of unit-based pricing on the waste collection demand: a meta-regression analysis”," IREA Working Papers 201420, University of Barcelona, Research Institute of Applied Economics, revised Jun 2014.
    15. Ishimura, Yuichi & Shinkuma, Takayoshi & Takeuchi, Kenji & Hosoda, Eiji, 2024. "The effects of regional goal setting on household waste," Ecological Economics, Elsevier, vol. 215(C).

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    More about this item

    Keywords

    Unit-based pricing; Waste reduction; Recycling ; Panel data analysis; Long-run effect;
    All these keywords.

    JEL classification:

    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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