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Estimation of garbage reduction and recycling promotion under the Containers and Packaging Recycling Law and garbage pricing

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  • Tatsuo Suwa

    (Hokkaido University)

  • Takehiro Usui

    (Soka University)

Abstract

This article examines the reducing and recycling effects caused by municipal solid waste policies, such as garbage pricing and recyclables collection. Equations for garbage and recyclables are estimated using Heckman’s two-step estimation and seemingly unrelated regression (SUR) to consider sample selection bias and the correlation between garbage and recyclables emission. The estimation results suggest that municipal PET bottle collection leads to a reduction in the amount of garbage collected. Furthermore, the results reveal that garbage pricing increases the quantity of PET bottles collected, while it decreases the amount of garbage.

Suggested Citation

  • Tatsuo Suwa & Takehiro Usui, 2007. "Estimation of garbage reduction and recycling promotion under the Containers and Packaging Recycling Law and garbage pricing," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 8(3), pages 239-254, September.
    • Handle: RePEc:spr:envpol:v:8:y:2007:i:3:d:10.1007_bf03353959
    DOI: 10.1007/BF03353959
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    References listed on IDEAS

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    1. 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.
    2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    3. James D. Reschovsky & Sarah E. Stone, 1994. "Market incentives to encourage household waste recycling: Paying for what you throw away," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 13(1), pages 120-139.
    4. Jenkins, Robin R. & Martinez, Salvador A. & Palmer, Karen & Podolsky, Michael J., 2003. "The determinants of household recycling: a material-specific analysis of recycling program features and unit pricing," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 294-318, March.
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