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Assessing Effects of Unit-Based Pricing on Household Waste Reduction Focusing on COVID-19 Period in Japan

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  • Taguchi, Hiroyuki

Abstract

This study aims to identify the effectiveness of municipal unit-based pricing (UBP) system on household waste reduction with a focus on COVID-19 period in Japan through a panel data analysis targeting 770 cities for 2013-2022. The study targets both simple unit-pricing (SUP) and two-tiered pricing (TTP) system as the UBP components. The study contributes significantly to the literature by providing new evidence because the previous studies have never targeted the COVID-19 period in assessing the UBP. The main findings are: first, the SUP was still effective enough to reduce household waste even during COVID-19 period though the SUP effectiveness was slightly offset due to the pandemic environments; second, the TTP worked well to restrain household waste under COVID-19 period, when people became cautious about their excessive waste volumes beyond the TTP criteria. The policy implication is a further need to expand municipal adoptions of the UBP system for household waste reduction.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:122779
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    File URL: https://mpra.ub.uni-muenchen.de/122824/1/MPRA_paper_122779.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
    4. Ju-Chin Huang, & John M. Halstead, & Shanna B. Saunders, 2011. "Managing Municipal Solid Waste with Unit-Based Pricing: Policy Effects and Responsiveness to Pricing," Land Economics, University of Wisconsin Press, vol. 87(4), pages 645-660.
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    6. Carattini, Stefano & Baranzini, Andrea & Lalive, Rafael, 2018. "Is Taxing Waste a Waste of Time? Evidence from a Supreme Court Decision," Ecological Economics, Elsevier, vol. 148(C), pages 131-151.
    7. 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.
    8. G. S. Maddala & Shaowen Wu, 1999. "A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 631-652, November.
    9. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    COVID-19; Japan; Unit-based pricing (UBP); Simple unit-pricing (SUP); Two-tiered pricing (TTP); Household waste;
    All these keywords.

    JEL classification:

    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • 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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