IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v88y2012iv1p745-763.html
   My bibliography  Save this article

Estimating Consumer Willingness to Supply and Willingness to Pay for Curbside Recycling

Author

Listed:
  • Brandon C. Koford
  • Glenn C. Blomquist
  • David M. Hardesty
  • Kenneth R. Troske
  • Margaret Hughes
  • Fred Morgan

Abstract

We estimate the willingness to pay for curbside recycling based on a contingent valuation survey of 600 residents of a large southeastern United States city. The best estimate of willingness to pay for curbside recycling is $2.29/month after adjustment for hypothetical bias. We also report the results of a field experiment designed to test the effectiveness of explicit monetary incentives and communication appeals to influence the decision to recycle and the quantity of materials to recycle. While households respond to the monetary cost of recycling, the effects of the token, ex ante incentives and appeals appear to be small.

Suggested Citation

  • Brandon C. Koford & Glenn C. Blomquist & David M. Hardesty & Kenneth R. Troske & Margaret Hughes & Fred Morgan, 2012. "Estimating Consumer Willingness to Supply and Willingness to Pay for Curbside Recycling," Land Economics, University of Wisconsin Press, vol. 88(4), pages 745-763.
    • Handle: RePEc:uwp:landec:v:88:y:2012:iv:1:p:745-763
    as

    Download full text from publisher

    File URL: http://le.uwpress.org/cgi/reprint/88/4/745
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ida Ferrara & Paul Missios, 2005. "Recycling and Waste Diversion Effectiveness: Evidence from Canada," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 30(2), pages 221-238, February.
    2. Thomas C. Kinnaman & Don Fullerton, 2002. "The Economics of Residential Solid Waste Management," Chapters, in: Don Fullerton & Thomas C. Kinnaman (ed.), The Economics of Household Garbage and Recycling Behavior, chapter 1, pages 1-48, 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. 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.
    5. David Aadland & Arthur Caplan, 1999. "Household Valuation of Curbside Recycling," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 42(6), pages 781-799.
    6. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
    7. W. Kip Viscusi & Joel Huber & Jason Bell, 2011. "Promoting Recycling: Private Values, Social Norms, and Economic Incentives," American Economic Review, American Economic Association, vol. 101(3), pages 65-70, May.
    8. Meyer, Bruce D, 1995. "Natural and Quasi-experiments in Economics," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 151-161, April.
    9. Seabright Paul B, 2009. "Continuous Preferences and Discontinuous Choices: How Altruists Respond to Incentives," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 9(1), pages 1-28, April.
    10. Karen Blumenschein & Glenn C. Blomquist & Magnus Johannesson & Nancy Horn & Patricia Freeman, 2008. "Eliciting Willingness to Pay Without Bias: Evidence from a Field Experiment," Economic Journal, Royal Economic Society, vol. 118(525), pages 114-137, January.
    11. Abbott, Andrew & Nandeibam, Shasikanta & O'Shea, Lucy, 2011. "Explaining the variation in household recycling rates across the UK," Ecological Economics, Elsevier, vol. 70(11), pages 2214-2223, September.
    12. 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.
    13. John List & Craig Gallet, 2001. "What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(3), pages 241-254, November.
    14. Hong Seonghoon & Adams Richard M. & Love H. Alan, 1993. "An Economic Analysis of Household Recycling of Solid Wastes: The Case of Portland, Oregon," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 136-146, September.
    15. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    16. 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.
    17. Paul J. Ferraro & Juan Jose Miranda & Michael K. Price, 2011. "The Persistence of Treatment Effects with Norm-Based Policy Instruments: Evidence from a Randomized Environmental Policy Experiment," American Economic Review, American Economic Association, vol. 101(3), pages 318-322, May.
    18. Patricia Champ & Richard Bishop, 2001. "Donation Payment Mechanisms and Contingent Valuation: An Empirical Study of Hypothetical Bias," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(4), pages 383-402, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tongzhe Li & Ana Espínola-Arredondo & Jill J. McCluskey, 2016. "Promoting Residential Recycling: An Alternative Policy Based on a Recycling Reward System," Games, MDPI, vol. 7(3), pages 1-18, August.
    2. Yamamoto, Masashi & Kinnaman, Thomas C., 2022. "Is incineration repressing recycling?," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    3. George Parsons & Kelley Myers, 2017. "Fat tails and truncated bids in contingent valuation: an application to an endangered shorebird species," Chapters, in: Daniel McFadden & Kenneth Train (ed.), Contingent Valuation of Environmental Goods, chapter 2, pages 17-42, Edward Elgar Publishing.
    4. Luisa Corrado & Andrea Fazio & Alessandra Pelloni, 2020. "Pro-environmental attitudes, local environmental conditions and recycling behavior," Working Paper series 20-21, Rimini Centre for Economic Analysis, revised Nov 2021.
    5. Brian Chi-ang Lin & Siqi Zheng & Ankinée Kirakozian, 2016. "One Without The Other? Behavioural And Incentive Policies For Household Waste Management," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 526-551, July.
    6. Ferreira, Sandra & Marques, Rui Cunha, 2015. "Contingent valuation method applied to waste management," Resources, Conservation & Recycling, Elsevier, vol. 99(C), pages 111-117.
    7. Yang, Xisi & Thøgersen, John, 2022. "When people are green and greedy: A new perspective of recycling rewards and crowding-out in Germany, the USA and China," Journal of Business Research, Elsevier, vol. 144(C), pages 217-235.
    8. Kinnaman, Thomas C. & Shinkuma, Takayoshi & Yamamoto, Masashi, 2014. "The socially optimal recycling rate: Evidence from Japan," Journal of Environmental Economics and Management, Elsevier, vol. 68(1), pages 54-70.
    9. Yokoo, Hide-Fumi & 横尾, 英史, 2020. "Ethics of randomized field experiments: Evidence from a randomized survey experiment," Discussion Papers 2020-07, Graduate School of Economics, Hitotsubashi University.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brian Chi-ang Lin & Siqi Zheng & Marie Briguglio, 2016. "Household Cooperation In Waste Management: Initial Conditions And Intervention," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 497-525, July.
    2. Bohara, Alok K. & Caplan, Arthur J. & Grijalva, Therese, 2007. "The effect of experience and quantity-based pricing on the valuation of a curbside recycling program," Ecological Economics, Elsevier, vol. 64(2), pages 433-443, December.
    3. D'Amato, Alessio & Mancinelli, Susanna & Zoli, Mariangela, 2016. "Complementarity vs substitutability in waste management behaviors," Ecological Economics, Elsevier, vol. 123(C), pages 84-94.
    4. Viscusi, W. Kip & Huber, Joel & Bell, Jason, 2023. "Changes in household recycling behavior: Evidence from panel data," Ecological Economics, Elsevier, vol. 208(C).
    5. Ferrara, Ida & Missios, Paul, 2011. "A Cross-Country Study of Household Waste Prevention and Recycling: Assessing the Effective of Policy Instruments," MPRA Paper 70811, University Library of Munich, Germany.
    6. 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.
    7. 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.
    8. Dijkgraaf, E. & Gradus, R. H. J. M., 2004. "Cost savings in unit-based pricing of household waste: The case of The Netherlands," Resource and Energy Economics, Elsevier, vol. 26(4), pages 353-371, December.
    9. Hai-Lan Yang & Robert Innes, 2007. "Economic Incentives and Residential Waste Management in Taiwan: An Empirical Investigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(3), pages 489-519, July.
    10. Damiano Fiorillo, 2013. "Household waste recycling: national survey evidence from Italy," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 56(8), pages 1125-1151, October.
    11. Timothy K. M. Beatty & Peter Berck & Jay P. Shimshack, 2007. "Curbside Recycling In The Presence Of Alternatives," Economic Inquiry, Western Economic Association International, vol. 45(4), pages 739-755, October.
    12. Yokoo, Hide-Fumi & Kawai, Kosuke & Higuchi, Yuki, 2018. "Informal recycling and social preferences: Evidence from household survey data in Vietnam," Resource and Energy Economics, Elsevier, vol. 54(C), pages 109-124.
    13. Ida Ferrara & Paul Missios, 2012. "A Cross-Country Study of Household Waste Prevention and Recycling: Assessing the Effectiveness of Policy Instruments," Land Economics, University of Wisconsin Press, vol. 88(4), pages 710-744.
    14. Ferrara, Ida & Missios, Paul, 2016. "Reduce, Reuse or Recycle? Household Decisions over Waste Prevention and Recycling," MPRA Paper 74863, University Library of Munich, Germany.
    15. Paul Missios & Ida Ferrara, 2011. "A Cross-Country Study of Waste Prevention and Recycling," Working Papers 028, Toronto Metropolitan University, Department of Economics.
    16. Don Fullerton & Andrew Leicester & Stephen Smith, 2008. "Environmental Taxes," NBER Working Papers 14197, National Bureau of Economic Research, Inc.
    17. van den Bergh, Jeroen C.J.M., 2008. "Environmental regulation of households: An empirical review of economic and psychological factors," Ecological Economics, Elsevier, vol. 66(4), pages 559-574, July.
    18. W. Kip Viscusi & Joel Huber & Jason Bell & Caroline Cecot, 2013. "Discontinuous Behavioral Responses to Recycling Laws and Plastic Water Bottle Deposits," American Law and Economics Review, American Law and Economics Association, vol. 15(1), pages 110-155.
    19. Maarten A. Allers & Corine Hoeben, 2010. "Effects of Unit-Based Garbage Pricing: A Differences-in-Differences Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(3), pages 405-428, March.
    20. Nick Johnstone & Julien Labonne, 2004. "Generation of Household Solid Waste in OECD Countries: An Empirical Analysis Using Macroeconomic Data," Land Economics, University of Wisconsin Press, vol. 80(4).

    More about this item

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:88:y:2012:iv:1:p:745-763. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: http://le.uwpress.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.